UNICREDIT is due to sell off a bumper load of shares in a desperate bid to avoid crisis.
Italy’s largest bank is preparing to unveil a £10.9billion (€13bn) rights issue this week.
UniCredit is expected to announce the sale in London and outline plans to offload assets and wide-ranging cuts.
The sale is part of a strategic review. UniCredit chief executive officer Jean Pierre Mustier plans to reveal the results on Tuesday.
It comes as Italy’s banking sector crisis continues as Monte Dei Paschi di Siena (MPS) may need state intervention to avoid collapse.
A £4.1billion (€5bn) rescue plan for MPS hung by a thread on Monday after Prime Minister Matteo Renzi’s heavy defeat at a weekend referendum tipped the country into political turmoil.
The bank, saddled with bad loans, needs to raise the money by the end of the month to avoid being wound down,
The European Central Bank (ECB) turned down Italy’s request for more time to raise private cash to save the country’s oldest bank.
As a result, investors have rushed to sell, sending prices of the bonds through the floor.
Now Rome is putting together plans to nationalise or part-nationalise Italy’s third-largest lender.
Full article: Italy’s biggest bank UniCredit to be SOLD OFF in UK in desperate bid to avoid crisis (Express)