Mps Capital Service doubling as Cib: investment bank out of the UniCredit deal

by time news

The selected perimeter of is not yet defined Mps which should flow into UniCredit. Times are expanding and not only for politics interested in overriding the by-elections of October 3, but because the due diligence it is also proving to be very complex in relation to the subsidiaries. Some fixed points, however, are outlining the contours of the operation for which Andrea Orcel, almost certainly, one will agree with the Treasury extension of the exclusivity expiring on 7 September. He writes it The messenger adding that from a video call between the top banker from Praia do Guincho and the main men of the team working on Siena it would have emerged that of the good bank the subject of the deal could be excluded Mps Capital Services, which is the Corporate&Investment Bank with headquarters in Florence and offices in Milan, Rome and Siena.

Beyond the Npl, disputes, legal risks, 150 branches located in areas where there would be an excess of market share, l’exclusion of the investment bank from the perimeter it would really represent a novelty because it is part of the heart of Montepaschi. Of course, there is no decision already taken also because the draft perimeter that should interest UniCredit to be communicated to the Mef will not be completed by the end of August, but next week. What if it were confirmed that theinvestment bank should it remain out, the Treasury may decide to integrate it with Mcc, recipient of the branches in Sicily and Puglia, for the business affinities thus expanding the mission of the Roman public bank. From the assessments made so far, Mps Capital Services would be a sort of duplicate of the Cib of Unicredit which develops 4 billion in revenues per year and has about 3,500 employees.

350 employees work in the Siena business bank for a turnover of around 100 million. Furthermore, the Sienese subsidiary has gained expertise in financial products such as the placement of bonds for which it is the primary dealer. In February, the Mef entrusted Mps Capital Services, together with Citigroup Global Markets Europe AG, Deutsche Bank AG, Goldman Sachs Bank Europe SE and Nomura Financial Products Europe GmbH, the mandate for a dual tranche issue of a new 10-year BTP benchmark maturing in August 2031 and a benchmark 30-year BTP, indexed to euro area inflation, maturing on May 15, 2051.

The possible exclusion of the investment bank could have effects on the modalities of the transaction which is based on the neutrality of impact on Unicredit’s capital on the assumption that, before the demerger, the Mef covers the difference in rwa with a capital injection. Among the still open points that also concern employment levels is the creation of a garrison in Siena that Orcel could maintain not as a territorial management but as a business center.

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