MILAN (Reuters) – Saipem does not have any information explaining Monday’s share movements, a spokesman for the Italian energy contractor said, after the stock closed down 5.7%.
More than 10% of the share capital of the group was traded on the Milan stock exchange, according to Refinitiv data.
The stock hit a low of 1.3750 euros on Monday after rising last week to 1.5560 euros, the highest level touched since last summer, when it completed a large capital increase.
The reasons behind the heavy trading activity were unclear, with sources close to the matter pointing to different possible explanations including profit taking after recent gains.
Two traders also mentioned the possibility that banks that had bought into Saipem’s capital increase at a price of 1.013 euros per share last summer decided to reduced their exposure to the group on Monday.
In July a pool of lender bought Saipem’s shares worth almost 600 million euros after a cash call fell short of the 2 billion euro target.
BNP Paribas, Citigroup, Deutsche Bank, HSBC, Intesa Sanpaolo and UniCredit were the joint global coordinators of the Saipem issue. ABN AMRO, Banca Akros, Banco BPM, Banco Santander, Barclays, BPER, Goldman Sachs International, Societe Generale and Stifel were listed as the joint bookrunners.
(Reporting by Francesca Landini and Giancarlo Navach, editing by Gianluca Semeraro and Gavin Jones)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.