AXA said on Monday it was selling virtually all of the 8% stake in Monte dei Paschi di Siena acquired when it invested into a make-or-break new share issue at the state-owned Italian bank.
AXA paid 200 million euros in November into Monte dei Paschi’s (MPS) 2.5 billion euro capital increase, becoming its second biggest shareholder after the Italian state, which owns 64%.
MPS sold new shares at 2 euros each and used part of the proceeds to lay off thousands of staff in November and cut costs. Shares have rallied since to close at 2.7445 euros each on Monday.
AXA said it would communicate by Tuesday at the latest the results of the private placement it was conducting through an accelerated book building procedure on a 7.94% MPS stake.
A person with knowledge of the matter said the shares had been sold to multiple investors and not a single buyer.
AXA is the insurance partner of MPS and has invested in the bank in the past.
As MPS prepares to name new directors in April, AXA said it did not want to seek representation on the board or influence the bank’s “broader long-term strategy.”
“AXA believes it is timely to sell its participation purchased in the capital increase,” the insurer said.
“The offering does not impact in any way AXA’s partnership with the bank or AXA’s commitment to the Italian market,” it added.
(Reporting by Valentina Za and Dina Kartit; editing by Sudip Kar-Gupta and Peter Graff)
Topics Mergers & Acquisitions AXA XL
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