|
UniCredit said it had hired BNP Paribas to buy back up to 2.34
billion euros ($2.53 billion) worth of shares, equivalent to 12%
of the bank's capital, with completion expected by the end of
June.
The European Central Bank last week gave UniCredit a green light
to buy back 3.34 billion euros of its own shares, following a
2.58 billion euro buyback completed last year.
UniCredit trades at a discount to its book value, and Orcel has
repeatedly said his goal is to lift the share price to trade in
line with the book value.
The gap between the two is set to narrow on a per share basis
once the repurchased shares are cancelled, due to the fact that
they are being bought at a discount.
Buybacks also increase earnings per share since there are fewer
shares in circulation.
UniCredit's shares were trading almost 2% higher by 0721 GMT,
comfortably outperforming a 0.7% rise in Italy's banking index.
($1 = 0.9247 euros)
(Reporting by Valentina Za; Editing by Kirsten Donovan)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
