Venerdì, 19 Ottobre 2018

RCS Mediagroup stock soars after Fiat swoops on options


Milan, July 2 - The Milan stock exchange on Tuesday
suspended trading in RCS Mediagroup after shares of the
financially troubled Italian publisher soared 13.87% in little
more than 30 minutes on news that a public takeover offering
could be imposed on certain company shareholders.
RCS - owner of Italy's largest paper of record, Il Corriere
della Sera, among other assets - is proceeding on a
400-million-euro capital increase and faces bankruptcy unless it
successfully raises new capital.
RCS shares went haywire on news Friday that automaker Fiat,
a minority shareholder, was seeking the ability to increase its
stake from 10% to a possible 20%, acquiring the options on the
open market as well as roughly 3% worth from other participants
in RCS's majority-shareholder-pact, to which Fiat belongs.
In April, Fiat Chairman John Elkann said Fiat would
participate in the capital-increase operation being organized by
RCS, but taking a 20% stake would make Fiat the largest single
shareholder of RCS.
Italian stock-market watchdog Consob is now assessing
whether to force Fiat and the other participants in the 58%
majority-shareholder pact to make a public takeover bid.
RCS presented in April a three-year turnaround plan, which
includes a 400-million-euro capital increase and the goal of
selling off 250 million euros' worth of non-core assets by the
end of 2014.
Shareholders approved the capital increase on May 30.
Fiat shares were down 0.9% on Monday, and continued to slip
1.64% on Tuesday.
RCS shares were up 6% on Tuesday after trading resumed.

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