, the French insurer was one of the largest backers of a crucial 2.5-billion-euro capital increase that the hard-beaten lender secured in November. The Italian bank, majority-owned by the state, had initially struggled to find many takers as investors were mindful of how quickly it had burned through a jumbo 8-billion-euro government bailout since 2017. For AXA, supporting the cash call was instrumental to protect its existing insurance distribution partnership with Monte Paschi.
Buberl’s daring investment has paid off surprisingly quickly. The French insurer said on Tuesday it had sold 100 million shares, nearly 8% of Monte Paschi’s total, at 2.33 euros each, pocketing 233 million euros. That’s a 17% gain from the 200 million euros it invested in the cash call. Monte Paschi’s recent strong share-price performance has in any case more to do with the improved economic outlook in Europe and rising interest rates than with any merit of its own.
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Source: Reuters - 🏆 2. / 97 Read more »