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2012 Unicredit’s rights issue: a no way out situation for long term shareholdersOn December 15th General Meeting, Unicredit’s Directors asked shareholders to approve €7.5 billion share capital increase to be carried on through a rights issue. A capital strengthening was requested by the EBA (European Banking Authority) and Unicredit actually needed it also following third quarter’s €10.16 billion devaluation of Unicredit’s investments.
Proxinvest publishes its 15th survey on French 2011 AGMsProxinvest’s annual study on general meetings finds a decrease of shareholders involvement with less protest on resolutions. Nevertheless, French shareholders are still some of the most challenging towards resolutions compared with their European counterpart with the level of opposition averaging 5.9% at companies within the main index, CAC 40 (6.3% in 2010).
ECGS responses to the Consob’s public consultation on Directors’ remuneration transparencyThe Italian market Authority, Consob, recently launched a new public consultation on proposed changes to market regulation to enhance Directors’ remuneration transparency. ECGS congratulates Consob as all proposed changes move into the right direction, encouraging issuers to a greater and more detailed disclosure of all remuneration components. Notwithstanding, ECGS, together with its local partner Frontis Governance, suggests further changes absolutely needed to improve fair treatment of all shareholders at every investee company.
Banco Popolare: the trade-off between dilution and egregious payout, an example of risky “tick-boxing” approachOn January 2010 Banco Popolare launched a rights issue allowing its existing shareholder to subscribe to Banco Popolare’s convertible bonds with the following conditions: nominal value of € 6.15, fixed interest rate at 4.75%, maturity March 2014. Starting from November 2011, bondholders are able to redeem the convertible bonds receiving an amount of shares equivalent to note’s nominal value plus 10% premium.
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