DIRS.INFO The most relevant business & tech news

MPS shares were down 7.8% at 2.83 euros by 1145 GMT on Tuesday, reflecting the impact of the sale. EU COMMITMENTSBofA Securities, Jefferies and UBS Europe coordinated the accelerated bookbuilding for the stake sale, the Treasury said in a statement. Commitments Italy agreed with European Union competition authorities at the time of the bailout bind Rome to eventually sell its entire stake in the bank. Two years ago heavyweight UniCredit (CRDI.MI) sank the government's privatisation efforts, forcing Rome to seek more time from the EU. The stake sale is seen as giving Italy more flexibility to pursue a long-term solution for MPS via a merger with a rival, after negotiations with UniCredit were complicated by an impending re-privatisation deadline.

Persons: Jennifer Lorenzini, Luigi Lovaglio, Giancarlo Giorgetti, Giorgia Meloni, Valentina Za, Lincoln, Richard Chang, Mark Potter Organizations: Monte, REUTERS, Treasury, MPS, BofA Securities, Jefferies, UBS Europe, European Union, Reuters, Economy, Banco, BPER Banca, EU, Thomson Locations: Monte dei, Siena, Italy, MILAN, Rome

The government last week revisited a 40% tax on banks' net interest margin (NIM) that it had introduced in a shock move in August. Lenders now have the option to boost reserves by an amount equivalent to 2.5 times the tax. Economy Minister Giancarlo Giorgetti said on Sept. 27 the final outcome of the process would be "a great bank policy measure" that makes Italy's banks the strongest in Europe. The law requires banks that forego the tax to set aside money under ad hoc reserves in their accounts. If forced to boost capital through the ad hoc reserves, banks can use larger buybacks over time to compensate shareholders, one of the sources said.

Persons: Giancarlo Giorgetti, Remo Casilli, Banks, Luigi Lovaglio, Andrea Orcel, Giorgia Meloni, Giorgetti, Bernadette Baum Organizations: REUTERS, Treasury, Economy, European Central Bank, Monte, Thomson Locations: Rome, Italy, ROME, Europe, Monte dei, Siena

☆ Italy has no buyers for Monte dei Paschi, eyes small share sales instead of exit, sources say
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +2 min

General view of a branch of Monte dei Paschi di Siena (MPS), the oldest bank in the world, which is facing massive layoffs as part of a planned business merger, in Siena, Italy, August 11 2021. Reuters was first in May to report the Treasury was open to selling down its Monte dei Paschi (MPS) stake on the market if conditions were right. Though the Treasury is considering cutting its stake with share placements, it would retain majority ownership, one of the sources said. Bankers said the capital raise has made any deal more expensive for any buyer, complicating the prospect for a merger. Reporting by Giuseppe Fonte in Roma and Valentina Za in Milan; editing by Alvise ArmelliniOur Standards: The Thomson Reuters Trust Principles.

Persons: Jennifer Lorenzini, Rome, Luigi Lovaglio, Lovaglio, Giuseppe Fonte, Valentina Za, Alvise Organizations: REUTERS, European, Reuters, Treasury, EU, MPS, Banco, Bankers, Thomson Locations: Monte dei, Siena, Italy, Roma, Milan

☆ Italy's MPS sees 2023 profit above 1 billion euros after tenfold rise
▼ + stars: | 2023-08-04 | by ( Valentina Za | ) www.reuters.com time to read: +3 min

FILE PHOTO-The logo of Monte dei Paschi di Siena bank is seen in a bank entrance in Rome, Italy August 16, 2018. Like peers, Monte dei Paschi (MPS) reaped the benefits of higher rates which have allowed banks to charge more for loans while what they pay out on deposits lags. To fund the voluntary staff exits by sending people into early retirement, Lovaglio oversaw a 2.5 billion euro ($2.7 billion) capital raise in tough markets last November. Shares in MPS traded 3.5% higher by late morning at 2.568 euros each. Core revenues jumped 10% on a quarterly basis to 941 million euros, leapfrogging expectations, with net interest income nearly doubling from last year and up 15% from the first quarter.

Persons: Max Rossi, Siena, Monte, Luigi Lovaglio, Lovaglio, Andrea Orcel, Valentina Za, Alvise Armellini, Keith Weir Organizations: REUTERS, STATE, MPS, Bankers, Thomson Locations: dei, Siena, Rome, Italy, MILAN

☆ TipRanks reveals the top 10 Wall Street basic materials sector analysts
▼ + stars: | 2023-07-02 | by ( Tipranks.Com Staff | ) www.cnbc.com time to read: +4 min

TipRanks recognized the 10 best analysts in the basic materials sector who delivered noteworthy returns and whose recommendations outperformed their peers. In the process, it analyzed every recommendation by analysts in the basic materials sector over the past 10 years. Then, TipRanks' algorithms calculated the statistical significance of each rating, analysts' overall success rate and the average return. Top 10 analysts from the basic materials sectorThe image below shows the most successful Wall Street analysts from the basic materials sector. T J Schultz — RBC CapitalT J Schultz has the 10th spot on the list, with a success rate of 63%.

Persons: Rafael Henrique, Lightrocket, TipRanks, Dan Payne, Bank Dan Payne, Payne, Leo Mariani — Roth MKM Leo Mariani, John Freeman — Raymond James Raymond James, John Freeman, Freeman, Poe Fratt, Global Partners Poe, Elvira Scotto —, Elvira Scotto, Vincent Lovaglio, Scott Hanold, Michael Harvey —, Michael Harvey, Harvey, Dalton Baretto, Canaccord Genuity Dalton Baretto, T J Schultz —, J Schultz Organizations: Bank, Birchcliff Energy, Resources, Vital Energy, Global Partners, Elvira Scotto — RBC, Crestwood Equity Partners, Mizuho Securities, Comstock Resources, RBC Capital RBC Capital, Matador Resources, Michael Harvey — RBC Capital, RBC Capital, Seven Generations Energy, Generations Energy, ARC Resources, T J Schultz — RBC, Targa Resources Locations: Canada

☆ Italy pushes to limit executive pay in listed state-run firms
▼ + stars: | 2023-05-04 | by ( Giuseppe Fonte | ) www.reuters.com time to read: +2 min

Top managers' multi-million euro salaries and handsome bonuses have come into focus at a time when Italian families are struggling with an inflation rate that neared 9% in April, well above the euro zone average. According to the government draft, the Treasury will work to "contain management costs" when shareholders vote on remuneration policies at state-controlled listed companies. Monte dei Paschi already applies curbs to executives' pay as a bank that was bailed out by the state in 2017. Under terms agreed with European Union authorities, the total remuneration of any MPS executive may not exceed 10 times the average salary of its employees in 2022. Additional reporting by Gavin Jones; Editing by Gavin Jones and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

☆ Sale of Italy's MPS should help create several big banks, says Meloni
▼ + stars: | 2023-04-22 | by ( ) www.reuters.com time to read: +2 min

Monte dei Paschi (MPS), of which the government owns 64% following a 2017 bailout, is seen playing a pivotal role in the consolidation expected among Italy's mid-sized lenders. After failing to clinch a sale of MPS to UniCredit (CRDI.MI) in 2021, the government is expected to seek another bank interested in buying its stake in the Tuscan lender. The government has just decided to renew Luigi Lovaglio's mandate as MPS chief executive for another term. We confirmed Lovaglio at the helm of Monte dei Paschi, the CEO successfully led the last capital increase, and now we must work to bring Monte back to the private market," Meloni said. "The government will not intervene, it is alert to check that there are no situations that jeopardise the national interest," Meloni told the newspaper.

MILAN, March 25 (Reuters) - Italy's Treasury said it would confirm Luigi Lovaglio as chief executive of Monte dei Paschi di Siena , keeping the veteran banker in charge of the bank as turmoil shakes the industry. Monte dei Paschi (MPS) is due to appoint a new board of directors on April 20 and the Treasury, which owns 64% of MPS following a 2017 bailout, on Saturday said it had filed its slate of nominees for the board. He arrived at MPS just over a year ago, when the Treasury pushed out his predecessor. A merger also remains the preferred option of banking supervisors to buttress MPS' fragile profitability, a second source said. A failed attempt to sell MPS to UniCredit has forced Italy to seek more time from the EU to cut its stake.

☆ Italy to hand Monte dei Paschi CEO Lovaglio new mandate - sources
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +1 min

MILAN, March 25 (Reuters) - Italy's Treasury is set to hand veteran banker Luigi Lovaglio a new mandate as chief executive of state-owned lender Monte dei Paschi di Siena , two people with knowledge of the matter said. Lovaglio, who built his career at UniCredit (CRDI.MI) where he eventually rose to lead the group's former Polish unit Bank Pekao, arrived at Monte dei Paschi (MPS) just over a year ago, when the Treasury pushed out his predecessor. The state owns 64% of MPS following a 2017 bailout. Lovaglio, one of Italy's most experienced commercial bankers, in November oversaw a make-or-break 2.5 billion euro ($2.7 billion) capital raise which allowed MPS to bolster capital and fund voluntary layoffs. ($1 = 0.9295 euros)Reporting by Valentina Za and Valentina Za; Editing by Michael PerryOur Standards: The Thomson Reuters Trust Principles.

☆ Monte dei Paschi investor CariFirenze doesn't plan to sell stake
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: +1 min

FLORENCE, Italy, March 3 (Reuters) - A local banking foundation that invested in Monte dei Paschi's (BMPS.MI) new share issue last year said on Friday it had no plans to sell the stake it built under efforts to make the lender part of a larger banking group. Speaking to Reuters on the sidelines of an event, the chairman of banking foundation CariFirenze, Luigi Salvadori, said the Monte dei Paschi (MPS) stake was not a purely financial investment but a strategic one "because we believe there is a need for another large banking group." CariFirenze was one of several banking foundations - traditionally investors in Italian lenders - that responded to an appeal by the Italian Treasury to back the make or break share sale. "We also liked CEO Luigi Lovaglio's plan," Salvadori said. Reporting by Silvia Ognibene, Wriring by Valentina Za; editing by Gianluca Semeraro and Susan FentonOur Standards: The Thomson Reuters Trust Principles.

Monte dei Paschi (MPS), which raised capital last year, needs to merge with a stronger rival to cement its turnaround. Banco BPM CEO Giuseppe Castagna, who faces pressure from shareholders to reject an MPS deal, has repeatedly said the Tuscan bank is too large for Banco BPM to integrate. A Banco BPM spokesperson said nothing had changed in this respect. HURDLESA Banco BPM and MPS tie-up would pose major hurdles, another three sources said separately. Banco BPM investors are also concerned about an expansion into regions of the country where economic growth is much weaker compared with the bank's wealthy home base in the north, one of the sources said.

However, two sources briefed on the matter told Reuters that the cap did not apply to MPS, based on the Treasury's interpretation of the rule. The salary cap compares with Lovaglio's current pay of 466,000 euros a year with no variable compensation, which is already well below peers. The MPS rescue deal Italy agreed in 2017 with European Union authorities cost taxpayers 5.4 billion euros. In November he worked with Rome to pull off a make-or-break 2.5 billion euro new share issue that saw Italy pump another 1.6 billion euros into MPS. MPS already enforces EU-mandated caps to its top executives' pay, which cannot total more than 10 times the average employee salary.

☆ ECB sets capital requirements for Monte dei Paschi for 2023, removes dividend ban
▼ + stars: | 2022-12-27 | by ( ) www.reuters.com time to read: +1 min

[1/2] The entrance of the Monte dei Paschi bank headquarters is seen in Siena, central Italy, January 29, 2016. REUTERS/Max RossiMILAN, Dec 27 (Reuters) - The European Central Bank has set the minimum capital requirements for Banca Monte dei Paschi di Siena (MPS) (BMPS.MI) for next year and also removed a ban on the distribution of dividends, the lender said in a statement on Tuesday. The ECB told Monte dei Paschi it must maintain a Common Equity Tier 1 ratio - a measure of financial strength - of at least 8.8%, the statement added. The lender raised 2.5 billion euros ($2.6 billion) in cash in November, braving stormy markets with a new share issue. After a failed re-privatisation attempt last year, Monte dei Paschi is working to improve its appeal for a potential buyer under new CEO Luigi Lovaglio so as to allow the state to cut its 64% stake in a merger deal with a stronger rival.

☆ Italy to cap Monte dei Paschi CEO's annual pay at 240,000 euros
▼ + stars: | 2022-12-21 | by ( ) www.reuters.com time to read: +1 min

MILAN, Dec 21 (Reuters) - Italy is preparing to cap at 240,000 euros ($254,496) the yearly pay of top executives hired from 2023 in banks rescued by the state, a move that has bearings for the reappointment of Monte dei Paschi's (MPS) (BMPS.MI) chief executive. After failing to clinch a sale of Monte dei Paschi to UniCredit (CRDI.MI) last year, the Treasury in February hired veteran banker Luigi Lovaglio to lead the Siena-based lender. He runs for reappointment in April when Monte dei Paschi's current board expires. As a bailed out bank, Monte dei Paschi already applies curbs to executives' pay and Lovaglio's fixed pay amounts to 466,000 euros a year with no variable compensation. Under terms Italy agreed with European Union authorities, MPS executives cannot earn more than 10 times the average employee salary.

☆ Monte dei Paschi to pay 125 million euros in fees for share sale
▼ + stars: | 2022-10-15 | by ( Valentina Za | ) www.reuters.com time to read: +3 min

MILAN, Oct 15 (Reuters) - Italy's Monte dei Paschi di Siena (MPS) (BMPS.MI) said a new share sale to raise up to 2.5 billion euros ($2.4 billion) would cost it 125 million euros in fees to financial institutions backstopping the issue. Register now for FREE unlimited access to Reuters.com RegisterAfter difficult negotiations that risked derailing the capital raising, the eight banks have agreed to guarantee the share issue for up to 807 million euros. Algebris is backstopping up to another 50 million euros. The fees amount to nearly 15% of the guaranteed sum and compare with a market value of just 99.8 million euros for MPS on Friday. The cost of the capital increase, which totals 132 million euros, would shave 15 basis points off that target, MPS said.

Up to 200 million euros of the capital will come from France's AXA (AXAF.PA), MPS' partner in an insurance joint-venture. Another 50 million euros are being guaranteed by London-based fund Algebris, whose founder Davide Serra is a close associate of Lovaglio. The state will put in 1.6 billion euros towards the capital raising, based on its 64% stake. Local banking foundations in Tuscany - charitable organisations overseen by Italy's Treasury - have already put in some 30 million euros. After its market value shrunk to just 256 million euros, MPS will sell the new shares with a discount of only 8.6% over Wednesday's closing price stripped of subscription rights.

Another 50 million euros are being guaranteed by London-based fund Algebris, whose founder Davide Serra is a close associate of Lovaglio. The state will put in 1.6 billion euros towards the capital raising, based on its 64% stake. If MPS gathers less than the maximum 2.5 billion euros, the state's contribution will be proportionally reduced so as not to exceed 64% of the total. At least 100 million euros will come from France's AXA (AXAF.PA), MPS' partner in an insurance joint-venture. After its market value shrunk to just 256 million euros, MPS will sell the new shares with a discount of just 8.6% over Wednesday's closing price stripped of subscription rights.

By late on Wednesday six banks, including global coordinators Bank of America (BAC.N), Citigroup (C.N), Credit Suisse (CSGN.S) and Mediobanca (MDBI.MI), had signed the guarantee contract, the sources said. Five years after an 8.2 billion euro ($8 billion) bailout that handed the state its 64% stake, MPS plans to raise the extra cash to lay off staff and bolster capital. The eight banks due to underwrite the MPS issue are willing to backstop only a third of the 900 million euro private portion of the capital raising, one of the sources said. MPS CEO Luigi Lovaglio had until recently not produced the written commitments, triggering a race in the last few days to get all the necessary documents signed. The Tuscan bank has so far secured support from its insurance partner AXA (AXAF.PA), local banking foundations and asset manager Anima Holding (ANIM.MI).

Five years after an 8.2 billion euro ($8 billion) bailout that handed the state its 64% stake, MPS plans to raise the extra cash to lay off staff and bolster capital. They have demanded written commitments from investors for an amount roughly equivalent to half the overall figure, accepting pledges which are not in writing for the rest to get to two thirds of the total, the source added. MPS CEO Luigi Lovaglio had until recently not produced the written commitments, triggering a race in the last few days to get all the necessary documents signed. MPS and the banks expect to be able to get to a deal on the underwriting contract later on Wednesday, although sources had previously not ruled out preparations taking until Thursday. A January 2030 bond yielded 41.42% after spiking to 45.44% from 39.95% at closing on Tuesday.

MPS (BMPS.MI) had scheduled a board meeting on Tuesday to set the terms of an up to 2.5 billion euros ($2.4 billion) share issue, the Tuscan bank's seventh in 14 years after an 8.2 billion euro bailout in 2017. Rocky markets and the size of the cash call, equivalent to more than 10 times MPS' current market value, have complicated talks over the share sale. The banks have long seen it as too risky to bring to the market without a pre-committed core of investors. The new shares will value MPS above healthier peers, exposing underwriters to likely losses on any shares left on their books, bankers and analysts say. On Tuesday, a source with knowledge of the matter told Reuters that MPS had secured some 30 million euros ($29 million) from local not-for-profit banking foundations in its home region.

The logo of Monte dei Paschi di Siena bank is seen in a bank entrance in Rome, Italy August 16, 2018. Closer ties could hamper MPS' future search for a merger partner as the state seeks to cut its 64% stake. The banks organising the stock issue, however, have long seen the need for cornerstone investors, sources had previously said. Anima could contribute up to 250 million euros towards MPS' capital raise, when including an upfront payment for the improved partnership terms, a source had previously said. The state is allowed to cover 64% of MPS' capital raise based on the size of the stake it acquired after a 2017 bailout.

☆ Wall Street’s top analysts bet on these stocks as economic uncertainty increases
▼ + stars: | 2022-09-18 | by ( Tipranks.Com Staff | ) www.cnbc.com time to read: +6 min

To that end, here are five stocks chosen by top Wall Street pros, according to TipRanks, a platform that ranks analysts based on their performance history. White has a track record of a 57% success rate on his ratings, each rating generating average returns of 11%. EQT CorporationThe growing demand for natural gas as an energy source is driving growth at EQT Corporation (EQT). (See Broadcom Stock Investors on TipRanks) The analyst believes that the acquisition will significantly drive Broadcom's earnings per share. 128 among around 8,000 analysts on TipRanks, Rakesh has had success with 57% of his ratings.

Search resuls for: "Lovaglio"

22 mentions found