I read this nice article by Walter Galbraith and I feel the need to disclose as much as possible.
The problem is that maybe you should not investigate the bankers but the actual "beneficial owners" of the whole operation.
In this country you have the courage to step on their feet in every possible way to Berlusconi and you do not have the courage to finally put the bar of entrepreneurship Lombard Moratti, and of Tronchetti Provera.
The fact that the investigation on the price of Saras went almost unnoticed, even by newspapers.
"The family Moratti has grossed 1.6 billion euro. Today, the title is € 1.93 per share compared with 6 of the quotation"
Everyone is free to get his opinion.
Prior should be given to further look at this article also , we started from here.
Onset the stock market was followed by a collapse of the shares. The deputy prosecutor of Milan, Luigi Orsi asks him not to proceed against bank officials for false prospectus and insider trading. But the battle of small investors could continue in a civil
WALTER GALBIATI
LONDON - No request for trial, but the offer of store it all. Yet the case and its turbulent Saras IPO resolved with a dramatic collapse of the actions is intended to still be debatable. Because the document submitted by the prosecutor appears to the court the opportunity to bring the war between small shareholders and banks from criminal law to the civilian.
The prosecutor of Milan, Luigi Orsi, asked the store for nine bank officials under investigation for insider trading and false prospectus: Federico Imbert, Simone Rondelli, Francesco Cardinali, Paola and Guido Tugnoli Volponi Jp Morgan, Galeazzo Oscar d'Andrea Levantini Intino and Morgan Stanley and Massimo Prosdocimi Cabot (Intesa Group). But the findings leave open more than a few doubts: "A prospectus and an unusual book - reads the paper - could certainly be open to criticism, for example in terms of professional indemnity insurance. But on the side of criminal responsibility, the crushing of the skills of those who participated in IPO (listing, ed) does not identify the author of a fact or a group of people who - in competition - have pursued the ' effect of a price quote Saras overestimated. The numerous and significant data suggest that such a maneuver on suspicion that they are considered so partisan as to be considered as a whole - are not eligible to herald the success of the prosecution in court. "
Meetings to decide the price. From the reconstruction of the listing made by the Milan prosecutors are emerging for the first time the roles of the Moratti family, their advisor Gerardo Braggiotti and banks in price formation. Two meetings, which are reconstructed in detail by the testimony of Simone Rondelli, former head of JP Morgan.
"On April 19, 2006 a meeting was held at the Saras attended by managers of Syndicate Desk of JPMorgan (JPM) and Morgan Stanley (MS) and then Rondelli, Imbert, Cardinals, Zubillaga, Luis Pinto Vas for JPM, MS Gobel, Roscoe, D'Intini, Levantine, and perhaps Carlo Michelini Pecori Giraldi. Also present were members Moratti, the two brothers and their sons, Alfani, Nuzzo, Costanzo and perhaps Scaffardi. For Partners GB are Bragiotti and Manfredi. For Cabot was Prosdocimi, Mountain, Dutton, and perhaps of the helmet. The leadership of the meeting was in the hands of the leaders of the Syndicate desk JPM and MS. They had spoken on the interval of the first price to be recommended . The three banks are preparing a presentation in which they are exposed: the research analysts, the premarketing, the proposed price range. Men's Syndicate desks are, respectively, Vas Pinto for JPM and MS Gobel. After this presentation, issuers and their financial advisers (Bragiotti and Manfredi) is secluded. After that, the Moratti and their advisers take over the meeting with some of those present initially (from memory, I, Pinto Vas and Imbert for JPM, D'Intini, Gobel and Roscoe Pecora and one or both do not remember MS, Prosdocimi for Cabot) and Bragiotti contropropone a range of higher price ( the proposed 4.6 to 5.8 to 5-6). Bragiotti motivated by observing that this rounding in premarketing investors had offered prices that would have certainly increased in the negotiation. The answer was in charge of the Syndicate Desk (Vas Pinto and Gobel), who observed unanimously that it was more prudent to lower a price range in what was to come a real formation of the book of questions. "
am the Braggiotti family and wanted a higher price. The final decision comes, however, always to be rebuilt at another meeting Rondelli.
"These are updated at the meeting 13 days later, on May 12, in the Milan offices of JPM. Here all those involved in the April 19, 2006 except Vas Pinto Gobel and a telephone connection. In addition there are Zubillaga of JPM and MS Michelini. banks (JPM, MS, and Cabot) intends to fix the final price of 6 € per share. The members agree that this proposal are those of the Syndicate desk, who speaks the proposal during the meeting not remember. Technically it should determine the price the seller. The proposal of the banks, argued on the basis of applications and the nature of the investors who make up at various price levels, the offer. At this point, Moratti, management consultant and the Saras is secluded and Bragiotti after this meeting they accepted the proposal of € 6. I was told - I do not remember if one of Moratti or management - that in the restricted meeting the family wanted to go to 6.1 and Bragiotti advised to stay at 6 €.
"We want a higher price." The confirmation that the family is pushing up the price reaches by the brothers themselves, in their interviews, confirmed by Gerardo Bragiotti Banca Leonardo "Moratti was asked if I was to get the case to € 6.20. Finally he looked at € 6, which was the advice of banks."
Gianmarco Moratti: "If the engineers had said that the stock would have been acceptable to less than 6 € we would not obsessed. Our perception is that the title could be worth less than € 5. When she finally is established to set the price at 6, on the basis of what the banks would represent us, it seemed even less than he had asked what could be. We think in terms likely to be tightly industry. I want to tell you that building a refinery today as one of Saras costs from 10 to 12 billion euro, almost double the capitalization of Saras.
Massimo Moratti on the same line: "She considers that the refinery was considered a total is between 10 and 12 billion euro (reconstruction), and this without regard to the goodwill established by staff who governs. I'm not a technical assessment of the value of Saras but at a price of € 6 from a total of 5.3 billion euro. "
Of course, as reported by Galeazzo will of Morgan Stanley, were not unaware of the Moratti value of their company and even inexperienced to finance things, as is testified in the prosecution. "I understand that Moratti had great expertise in the oil sector and related economic implications, and management, at least from what I heard from my colleagues, I was absolutely expert. Moreover, Moratti was assisted by experts and qualified consultants such as Banca Leonardo. Certainly in the meetings I attended I felt that they had clear value and the levels at which they wanted to proceed with the listing. " Significant
then the words of Matt Manfredi Banca Leonardo "I Moratti a difference between what the banks had shown their in terms of value the company at the beginning and then at the time when you are looking down on us. Moratti told us that I did not trust more than one hundred percent of the banks ".
And those reported in an email Levantini (Morgan Stanley) of 10 May 2006 where, instead, we read that "Alfani Scaffardi the other day and said that Moratti must light a candle that just a year ago these numbers were unthinkable ". Braggiotti but would be willing to download even more songs about small investors in order to obtain a higher price. The Levantine said in his interrogation.
" Application the pm: What was the price point below which they could not quote Moratti Saras? Answer: € 5.25 per share. The bottom of the fork. We must remember that May 12, 2006, the day of pricing, Braggiotti provocatively suggested fix to 6.5 suggesting to increase the retail tranche from 20% to 40%. Prosdocimi Braggiotti was to oppose that increase the supply to the retail market would have stiffened the title for the reasons I said before. I must say I was very honest because Prosdocimi suggested something that was against his interest. After this the apartment with Moratti Braggiotti. I and other colleagues of the three banks thought that they would be asked to Moratti dimension to 6.2. Meanwhile, JPM had proposed to MS and Cabot 6.1. I wrote via e-mail to Gobel Hyman and if we could join this threshold receiving consent. The Braggiotti Moratti and Massimo Moratti returned to the meeting and said something like, "we think the price is just 6.2, we understood that the operation is feasible for you to 6.1. But this is a good operation becomes excellent operation at 6 € "".
conclusions. pm The opinion of the price is clear: "The price at which the Saras has been placed on the Milan stock market was unreasonable (too high) and not for the fact that no longer belongs to this threshold even after a long time by the sharp fall recorded immediately. In fact, the listing price appears to have been consequent to two orders of assessments (the value of the company, which was represented with the prospectus, the consideration of the desirability of the title which is to build your cd book purchase orders) that seem biased by some profiles of criticality. The combination and synthesis of a value company and a market appetite for various reasons that effect would have resulted in overvalued "deflation" that has characterized the 'held port of Saras. This type of offense does not seem to have been lifted significantly disputed by the defense allegations.
is not enough, however, to ask the trial because "the many important details that cause so much suspicion about such a maneuver, which are regarded as partisan to be considered as a whole - are not eligible to herald the success of the prosecution in court. "
As you know things have gone. Yet on the day of listing, May 18 Rondelli send an email to colleagues where celebrate the work: "This morning I started the trading of the shares Saras. The troubled economy has pushed the market downward the comparables 15% since it was priced, so even today Saras opened in fall. In any case together with the company and the family celebrating a very successful operation, fees are around $ 20 - $ 30 million depending on the green shoe and incentive fee ".
The family however has grossed 1, € 6 billion. Today, the title is € 1.93 per share compared with 6 of the listing.
(February 16, 2011) © Reproduction reserved
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