Shareholders of Italy’s troubled Banca Monte dei Paschi di Siena — the world’s oldest bank — on Saturday voted to postpone until the middle of next year a giant capital increase needed to stave off nationalization.
Management had wanted the 3 billion euro (US$4 billion) capital increase to be completed by next month, but a shareholder meeting overwhelmingly backed a proposal by the bank’s foundation, which owns a 33.5 stake in the lender, to delay the cash call until May or June.
Paying for the capital increase would hit the foundation badly, prompting it to seek more time to sell its shares to a third party.
The shareholders’ meeting in Siena was originally scheduled to be held on Friday, but it had to be moved to Saturday because there were not enough shareholders present to meet the required 50.1 percent threshold.
A delay in recapitalization could be critical as the European Commission has demanded that the operation be completed by the end of next year so as to reimburse the state credits the bank received to avoid collapse.
The shareholders’ vote will come as a blow to chairman Alessandro Profumo, who had earlier warned that a delay in raising the capital would carry “grave risks,” and there were reports that he and chief executive Fabrizio Viola could resign if they did not get their way.
The head of the bank’s foundation, Antonella Mansi, meanwhile had argued that a capital increase next month would “destroy the foundation’s wealth.”
Speaking to shareholders on Saturday, Mansi said management’s proposal had “no chance of being approved.”
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
DIGITAL COMMERCE: In 2016, only 2 percent of orders were delivered in Taiwan, but that has risen to 10 percent, Foodpanda Taiwan Co operations director Nick Yu said Online food delivery platforms have seen explosive growth in Taiwan this year, helped by business opportunities related to the COVID-19 pandemic, company executives said at a digital commerce conference in Taipei yesterday. When the threat of COVID-19 kept people from going out to eat, more people experimented with ordering food deliveries online, Foodpanda Taiwan Co Ltd (富胖達) operations director Nick Yu (余岳勳) said. Foodpanda started operations in Taiwan in 2012. “We experienced 5,000 percent growth in the past 24 months,” Yu said. “That’s more than the previous six years combined.” In 2016, only 2 percent of food orders were delivered in Taiwan, but that