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MILAN (Reuters) - UniCredit has decided to skip the payment of coupons on some financial instruments, in a U-turn that sent the bond in question into a tailspin and hurt some other debt sold by Italy s No. 2 bank.
In presenting full-year results in February, Finance Chief Stefano Porro had told analysts the bank expected to pay a coupon on the legacy bond it issued over a decade ago, as well as on Additional Tier 1 bonds.
But a spokesman on Friday said UniCredit would not do so after posting a 2.79 billion euro ($3.4 billion) loss last year.
UniCredit has withheld coupon payments on the CASHES notes in the past after ending the year in the red, but the latest decision, taken by new Chief Executive Andrea Orcel barely a month after his arrival, took bond investors by surprise.
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Andrea Orcel stamped his mark on UniCredit within weeks of taking the reins, axing management committees and a dual head structure that had irked some top investors while hiring key lieutenants to oversee strategy and relations at the Italian bank.
Orcel, a veteran UBS (UBSG.S) and Merrill Lynch dealmaker who almost landed the top job at Spanish bank Santander (SAN.MC), was hired by UniCredit (CRDI.MI) after its board fell out with his predecessor, Jean Pierre Mustier, over strategy. I have heard your concerns about the complexity of our business . I have felt your frustration about some of the decisions that have been made; confusion about where ultimate responsibility lies; and the resulting lack of accountability, Orcel said in a message to UniCredit staff on Wednesday.
May 12 2021, 3:45 PM
May 12 2021, 12:37 PM
May 12 2021, 3:45 PM
(Bloomberg) UniCredit SpA Chief Executive Officer Andrea Orcel drastically reduced the ranks of top management and cut back on co-head structures to simplify decision-making as part of his first major changes since taking over.
(Bloomberg) UniCredit SpA Chief Executive Officer Andrea Orcel drastically reduced the ranks of top management and cut back on co-head structures to simplify decision-making as part of his first major changes since taking over.
In a bid to increase accountability, Orcel set up a new group executive committee of 15 members to replace the previous 27-member body, the Milan-based lender said in a statement on Tuesday.
UPDATE 3-UniCredit s new boss opens door to M&A after strong quarter reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.