Cardia: "Risk hostile takeover"

15 Oct

Posted by Red As News

The situation of financial markets may make some Italian listed companies to hostile takeovers. So the chairman of Consob, Lamberto Cardia, in the course of 'hearing in the Senate Finance Committee. "Concerns are new concerns - Cardia said - the consequences that the market situation may have on the exposure of listed companies to attempted hostile takeovers. Are indeed high, he added Cardia, "the limitations currently imposed by national legislation, more restrictive than many other European countries, the defense capabilities of companies (so-called passivity rule, which requires managers of companies under takeover bid not to make transactions that could hinder the purchase); limitations legitimate and justified in contexts other than ordinary market today. "

No change in support of the banks more serious consequences. The measures taken by the Government, second card, they should encourage the return to equilibrium conditions in the activity of credit intermediation, ensuring that the process of maturity transformation typical of 'activities will not cause the crisis of liquidity. For the chairman of Consob, "the lengthening of maturities of loans, will also meet the financing needs of enterprises in a favorable stage of the economic cycle, it must be reflected in a balanced relationship between deposits and bond issues on the liabilities side ' . Cardia said that the beginning of the crisis globally, with the bankruptcy of Lehman Brothers, on Friday, October 13 exchanges worldwide have lost around 30 percent. The Italian stock exchange since the beginning of 'years to 13 October has lost about 50 percent. "More signs that the crisis has seriously undermined investor confidence - explained Cardia - comes from high demand for government securities in which invested in cash still in the market." Without state intervention to support banking and financial groups, however, "the direct impact of the crisis on portfolios would take more meaningful dimensions.

Sale of Italian shares especially abroad. "The authorities to ensure transparency and fairness of the market, such as Consob - Cardia said - have taken all possible steps within their powers, intervening with progressively more stringent measures aimed at limiting speculation (short selling) . Investigations of Consob would also suggest that the most active brokers on the side of sales of the Italian stock market are foreign or foreign array. Even more substantial sales orders received by Italian intermediaries appear to come from abroad.

Possible additional penalties for those who have sold securities in the open Unicredit. The report shows that of Cardia 'could be taken further steps "against companies that sold securities in the open in recent weeks," recalls the measures already taken against Sim Credit Agricole Cheuvreux, with which it was ordered "not to allow two foreign entities (Bloomberg Tradebook Bermuda and GFI Secrutities Paris Branch) access to trading in securities banking and insurance negotiations on the Italian market. " But, stresses Cardia, "once you have acquired the complete results of requests for international cooperation and the investigation ongoing, if found compliance or violations of rules, could be taken further measures" sanctions. "In total - says Card - Consob has sent 11 requests for international cooperation in relation to the operation uncovered on the actions of 4 Italian financial issuers (Banca Monte dei Paschi di Siena, Banca Popolare di Milano, Unicredit and unipolar).

In Italy a lower risk compared to other markets. Cardia then emphasized that "further measures that have on the operation of the market will be agreed at international level whereas the data show, for our country risk even lower than those in other emerging markets."

More protection for small investors. "The protection of savings depends first and foremost the need to find appropriate means of safeguarding the interests of small investors, that the innovation of financial products and systems of mediation made under threat not suited to their characteristics and knowledge," said the chairman of Consob. Hubs essential for the proper functioning of the system remains the behavior of intermediaries, which will have to figure out renewed by the crisis. The Consob, then, has an ongoing strengthening of the 'supervisory action, in collaboration with the Guardia di Finanza, the rules are respected. Are in the process of being issued guidelines on the conduct of intermediaries in the distribution of illiquid product, based on addresses already undergone consultation. Regulatory and supervisory activities, Consob then complement efforts for investor education, "so that small investors to acquire more knowledge of the characteristics of various financial products and know how to protect themselves more effectively in the face of prospects of risk is not appropriate, often related to forecasts of high yields .