The strategic and audit panels of UniCredit have chosen to back and advise its board to clear a rights issue of up to €7.5 billion, The Wall Street Journal reports. The lender’s board is expected to disclose a business strategy and the company’s third quarter results on November 14. Depending on shareholder approval and market conditions the placement may start in January.
Bank of America Merrill Lynch is counseling the bank on the rights issue. BofA Merrill Lynch is also internationally coordinating the offering jointly with Mediobanca. A separate group of ten banks will also be involved with the issue process. Additionally, UniCredit intends to revamp its investment banking operations, as well as its business in Central and Eastern Europe. UniCredit is a major global financial institution with roots in 22 European countries and presence in about 50 markets, with about 9,518 branches.
Click here for the story from The Wall Street Journal.