Tuesday, May 22, 2012


 
  By Giada Zampano and Giovanni Legorano 
  Of DOW JONES NEWSWIRES

ROME (Dow Jones)--Italian banks UniCredit SpA (UCG.MI) and Intesa Sanpaolo SpA (ISP.MI) said Tuesday that they are placing their entire stakes in London Stock Exchange Group PLC (LSE.LN) to institutional investors through a bookbuilding process.

In separate statements, Intesa Sanpaolo said it was placing its 5.4% stake in LSE while UniCredit said it was offering its 6.1% holding.

The LSE has a market value of GBP2.77 billion, meaning stakes of 5-6% would be worth around GBP140 million to GBP150 million, depending on the final price.

The banks appointed Morgan Stanley (MS) as bookrunner for the placements.

A person familiar with the matter said Morgan Stanley is doing an accelerated bookbuild for the combined stake of more than 11% of LSE stock on behalf of UniCredit and Intesa. Both of the Italian banks have been shareholders in the LSE since the LSE acquired Borsa Italiana in 2007.

"The Italian banks are going through some of their own issues at the moment. LSE shares have risen well recently, and the money that the banks can raise can help boost their capital," the person said.

"Timing-wise, this accelerated bookbuild could be done overnight or in a day or so," the person said.

People familiar with the two banks said neither of them considers the stake as "strategic" and a sale at this point is seen as an opportunity.

Italian banks, like many across Europe, are keen to shed assets considered nonessential in an effort to build their balance sheets in the face of euro-zone uncertainties and stricter capital requirements.

None of the participants could comment on potential buyers of the LSE stakes. Substantial current shareholders in the LSE include Borse Dubai Ltd., with 20.6%; and Qatar Investment Authority, with 15.08%.

LSE shares closed up 2.2% Tuesday at 1,021 pence, in a higher day for U.K. financials. The shares have a 52-week range of 751-1,104 pence.

- By Giovanni Legorano, Dow Jones Newswires, +39 02 58219906; Giovanni.Legorano@dowjones.com

(Vladimir Guevarra in London contributed to this article.)

(END) Dow Jones Newswires

22-05-12 1728GMT