Banks to subscribe for at least 400 million euros of Saipem new shares

(Reuters) – A pool of banks will have to buy shares worth at least 400 million euros ($401 million) in Saipem (SPMI.MI) after a cash call by the Italian energy services firm failed to raise the 2 billion euro target it was seeking from investors.

Saipem SpA said on Monday it had raised only around 1.4 billion euros as it sought to shore up its finances and refocus its business after a shock profit warning in January.

A subsequent auction of unexercised rights to buy new shares had covered only a further 9.9% of what Saipem was seeking, the company said on Wednesday, leaving around 20% to be mopped up by the underwriting banks.

That figure could rise depending on how many of the rights are actually exercised.

Saipem shares have fallen heavily this week to trade close to the 1.013 euro price at which the new stock is being issued.

It is not clear how long the banks planned to sit on their holdings in Saipem.

Italian energy major Eni (ENI.MI) and state lender CDP, which control Saipem with a combined 44% stake, have fully subscribed their share of the capital hike.

BNP Paribas, Citigroup, Deutsche Bank, HSBC, Intesa Sanpaolo and UniCredit were named by Saipem as the joint global coordinators of the issue.

ABN AMRO, Banca Akros, Banco BPM, Banco Santander, Barclays, BPER, Goldman Sachs International, Société Générale and Stifel were listed as the joint bookrunners.