MILAN Italian lender UniCredit's 13 billion euro ($13.7 billion)capital increase is set to be concluded successfully, two market sources said on Wednesday.
Investors have until Thursday to subscribe to the cash call, and the entire operation is due to end by March 10. One of the people said the issue was likely to be fully subscribed.
Italy's biggest bank, which needs to raise money to rebuild its capital base after a balance sheet clean-up under new Chief Executive Jean Pierre Mustier, declined to comment.
The cash call is fully guaranteed by a group of banks, and investors that do not exercise their rights to buy new shares face a dilution in their stake of more than 70 percent.
UniCredit is selling new shares at 8.09 euros each, equivalent to a 38 percent discount to the price of the stock when excluding subscription rights.
Its shares closed down 2.07 percent at 12.30 euros on Wednesday, roughly in line with the wider Italian banking sector.
"This makes it very convenient to exercise the rights," one of the sources said.
(Reporting by Gianluca Semeraro Writing by Agnieszka Flak; Editing by Mark Potter)