All clear and nothing in order at Mps. The leaders of Monte dei Paschi di Siena are at work both on the industrial plan and on the rescue and relaunch operation which is based on the sale of a stock of bank bad debts and on a capital increase of 5 billion euros. But on the sidelines of the action of the new Monte director, Marco Morelli , the former banker Corrado Passera also continues to work on a plan that does not seem to be any more alternative than the one devised by JP Morgan and Mediobanca in the past. THE NEWS OF THE PASSERA PLAN
Not only that: the plan of Passera compared to the previous one not discussed and snubbed in substance by the previous board of directors of the Sienese institute has a significant change. The former number one of Intesa Sanpaolo no longer asks to be CEO of Mps, as instead in fact Passera asked when the head of the Monte company was Fabrizio Viola , later replaced by Morelli. WHAT IS SAYING IN SIENA
Furthermore, according to financial circles, as we said, what was perceived as an alternative plan to that of JP Morgan also orchestrated by the former minister Vittorio Grillinow it is considered in some ways complementary also because it does not question the current CEO (and perhaps thinks about the imminent replacement of Massimo Tononi , resigning president of Monte after the tensions with the Minister of Economy, Pier Carlo Padoan, here all the reconstructions of Formiche.net). So much so that the council that met last Friday in Siena gave Morelli a mandate to investigate, convening a new council for today in which the details of the proposal presented by the former number one of Intesa Sanpaolo will be illustrated. “That it is no longer the one developed in July by UBS and immediately returned to the sender, but a new proposal that, according to those who have had the opportunity to see it, is similar to that of Jp Morgan and Mediobanca on which Morelli is working now”, Corriere della Sera writes. THE UNCERTAIN TIMING
But, according to Repubblica, Passera “would take 6-8 weeks to study Rocca Salimbeni’s papers. Times incompatible with the agenda of CEO Marco Morelli who intends to recapitalize on 5 December. As pecunia non olet, however, the offer of Passera, if it materializes, could in the future converge in the plan of JP Morgan, which provides for pivot shareholders for 2 billion, 1.5 from the conversion of subordinated bonds and the remainder of the increase on the Stock Exchange. “. THE PLAN OF THE FORMER INTESA BANK
The Passera maneuver, according to what has been filtered, would first of all be conditioned by the outcome of a due diligence on the Monte, would bring the need for new capital to 1-1.5 billion thanks to the entry of new investors which would bring up to 2.5 billion billions of euros and the waiver of the distribution of dividends for a certain number of years. The bad debts would then be disposed of with the creation of a bad bank to which 31 billion Npls would be conferred, adds Repubblica: “It also seems that the plan may not make it necessary, or reduce, the conversion of subordinated bonds”. WHO ASSISTES CORRADO PASSERA
In the elaboration of the plan, the former CEO of Intesa Sanpaolo would have been supported – writes Mf / Milano Finanza – by the professionals of the Boston Consulting Group who in recent weeks would have elaborated the general outline of the proposal. Two long-time professionals from the Cleary Gottlieb law firm would have worked on the legal aspects. On the other hand, the Swiss group UBS would no longer be the match, which in July had moved in sharing of intentions with Passera, effectively providing a guarantee to the capital strengthening operation. “Given the advanced stage of negotiations with investors”, points out a qualified source, “today the role of UBS would be superfluous because the entry of funds into Monte’s capital could take place in a relatively short time”. THE STRENGTHS ACCORDING TO MF
Mf / Milano Finanza adds: “The strength of the plan is undoubtedly the presence of large institutional investors. As already happened last July, the banker would have collected the interest of some American funds such as Warburg Pincus and Atlas Merchant Capital (led by the former CEO of Barclays Bob Diamond) potentially willing to invest between 1.5 and 2 billion in the Sienese bank. of euro through a reserved capital increase “.
