(supersedes previous)Investors
on the Milan stock market "celebrated" UniCredit bank's
2016-2019 strategic plan as its shares soared 15.92% to close at
2.42 euros a share on Tuesday.
Shares in the bank traded hands on volume of 326 million
shares, equal to over 5% of capital stock.
UniCredit subsidiary Fineco also posted gains (+7.69% to 5.07
euros a share) after UniCredit CEO Jean Pierre Mustier said his
company intended to retain control.
UniCredit earlier announced plans to raise 13 billion, cut
14,000 jobs and achieve net income of 4.7 billion euros by
2019.
The 13-billion-euro rights issue is "fully underwritten by
volume by a consortium of leading international banks",
UniCredit said.
UniCredit reportedly plans to shut down 800 branches and
reduce its Italian workforce by 21%, equal to one-fifth of its
overall employees.
Trading in UniCredit shares on the Milan bourse was initially
suspended Tuesday after they fell 5.12%. The stock returned to
trading shortly after with a 3% increase to reach 2.49 euros per
share.
"We have developed a pragmatic plan based on conservative
assumptions with tangible and achievable targets," said Mustier.
Management is "taking decisive action to deal with our
(non-performing loan) legacy" in a bid "to become one of
Europe's most attractive banks", the CEO said.
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