UniCredit begins Italy's biggest corporate share sale in an attempt to raise 13 billion euros ($14 billion) to rebuild the bank's capital after a balance sheet clean up. Ciara Lee reports.
13 billion euros is the goal. UniCredit has kicked off Italy's biggest corporate share sale. The bank is hoping to rebuild its capital after a balance sheet clean up. Lenders in Italy have been struggling to deal with bad loans left behind by a deep recession. It's led to a series of capital raisings in the sector as Rome tries to steady confidence. UniCredit said last week it will post a near 12 billion euro loss for 2016 - thanks to one-off hits stemming mainly from loan writedowns. It's preparing to offload nearly 18 billion euros in bad debts. As part of the wider restructuring, UniCredit announced over the weekend it had agreed with unions 3,900 lay-offs. That's part of a wider plan to cut 14,000 staff by 2019. Rights to buy into the cash call - Europe's largest in six years - fell 7.5 percent. Although some traders in Milan said that was a smaller-than-expected drop.