* Rights issue price set at 42.50 euros
* 1 new share for 5 existing shares
* Subscription period: March 17-31
* Asset management sector witnessing several M&A deals
(Adds detail, background)
PARIS, March 14 French asset manager Amundi
set a price of 42.50 euros for its previously
announced 1.4 billion euros ($1.5 billion) rights issue to
finance its acquisition of Pioneer Investments from Italian bank
The rights issue price of 42.50 euros represents a discount
of 20.6 percent to Amundi's closing share price of 53.50 euros
on March 13. Shareholders would get 1 new share for 5 existing
shares as part of the capital increase.
French bank Credit Agricole will subscribe to the
rights issue and will hold around 70 percent of Amundi's share
capital once the rights issue has been completed.
The subscription period for the rights issue will run from
March 17 to 31, Amundi added on Tuesday.
Amundi's planned takeover of Pioneer comes amid signs of
consolidation within the asset management industry, as companies
look to cut costs and win market share.
Earlier this month, Standard Life announced a
takeover of Aberdeen Asset Management, while in 2016
Henderson Group agreed to buy U.S. rival Janus.
Amundi has been on an expansion spree following its stock
market flotation in 2015, and the company is aiming to win more
market share in Europe and Asia.
($1 = 0.9383 euros)
(Reporting by Sudip Kar-Gupta; Editing by Christopher Cushing)