By Manuela Mesco
MILAN--Italian state lender Cassa Depositi e Prestiti SpA
decided Wednesday that CDP's preferred shares held by Italian
banking foundations will automatically convert into ordinary shares
from April 1, 2013.
The value of the conversion will be decided at a later stage, a
CDP spokesman said.
In their conversion, banking foundations--which currently hold a
30% stake in CDP--will need to return to CDP around 50% of the
extraordinary dividends received so far in their capacity as
preferred shareholders. This would cause a substantial loss for the
already financially weak foundations and that could also have an
impact on Italian banks in which they hold stakes.
Giuseppe Guzzetti, chairman of the foundations' association
ACRI, has previously said that foundations are happy to "remain
shareholders in CDP" but under fair conditions.
However, a government decree could allow foundations to decrease
their stake in CDP from the current 30%, hence allowing them to pay
back less in the conversion operation. The decree is still to be
approved.
CDP also decided Wednesday that holders of preferred shares will
be able to exert the right of one-to-one conversion and the right
of withdrawal from Feb. 15 to March 15, 2013, the lender said in a
statement.
CDP receives more than 80% of its funding from state-guaranteed
savings products. In return, its role is to lend to Italian local
authorities and small- and medium-size enterprises, as well as fund
long-term infrastructure projects.
Its role has significantly expanded and it is also allowed to
acquire equity holdings in companies "of major national interest"
through its Italian Strategy Fund. CDP owns controlling stakes in
Italian energy behemoths such as oil and natural gas company Eni
SpA (E), electricity-grid operator Terna SpA (TRN.MI) and gas
transmission and storage company Snam SpA (SRG.MI).
Write to Manuela Mesco manuela.mesco@dowjones.com
