Table of Contents:
A strategic plan for the repurchase of shares
Mediobanca announced the launch of an ambitious share repurchase program, which will start on November 12. This initiative was approved by the Ordinary Shareholders’ Meeting on October 28, after receiving authorization from the European Central Bank (ECB). The plan involves the purchase of a maximum of 37,500,000 ordinary shares, corresponding to approximately 4.5% of the share capital, with a spending limit set at 385 million euros
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Objectives of the buy-back program
The buy-back program has a dual objective. On the one hand, it aims to increase earnings per share through the cancellation of repurchased shares. On the other hand, it intends to support external growth operations through acquisitions and to finance compensation plans based on financial instruments for the Group’s staff. Mediobanca expects to conclude the program within twelve months of the authorization of the ECB, making this initiative an integral part of its strategy to optimize shareholder value and support long-term growth
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Market impact and financial performance
Despite the announcement of the repurchase program, Mediobanca recorded a negative performance on the market, with an 8% drop in securities in the Ftse Mib. This decline was fueled by the quarterly report, which showed lower than expected revenues and a cut in interest margin forecasts for the entire year. The situation is further complicated by recent news from other companies and markets, such as the US group Home Depot, which reported a slight decline in profits, and the German ZEW index, which showed a worsening of
economic expectations.
Global economic context and geopolitical tensions
Chinese stock exchanges closed lower due to geopolitical tensions and uncertainties about the national economy, with the Shanghai index falling by 1.39% and the Shenzhen index losing 0.65%. The Hong Kong stock exchange also registered a significant decline of 2.84%. These events highlight a complex global economic environment, in which companies must navigate internal and external challenges to maintain growth and financial stability
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