EMAK SpA – Showdown

It seems that someone is working hard to achieve the “Paranoia Scenario”for the EMAK capital increase.

Today, a whopping 877 thousand shares have been traded. The intraday chart looks really weird, I don’t remeber having seen anything close.

Tomorrow, December 6th is the last trading the for the rights. So it will be interesting to see if there will be even more selling pressure in the EMAK stock.

I am not sure what happens in Italy if rights are not exercised by the holders. In Germany there is normally an auction on the last trading day for all those rights which were not exercised by their holders.

Intesa for example clearly outlined how the process worked when they did their last capital increase:

According to the timetable of the Offering, rights may be exercised from 23 May 2011 until the close of business on 10 June 2011 (“Subscription Period”). Any rights not exercised will be forfeited by the holders without compensation. Shareholders may trade their rights on MTA from the start of business on 23 May 2011 until the close of business on 3 June 2011. Results of the Offering at the end of the Subscription Period will be announced in a press release within five days from the end of the Subscription Period.
Within the month following the end of the Subscription Period, any rights not exercised will be offered on the MTA for at least five trading days pursuant to article 2441, third paragraph of the Italian Civil Code. The number of rights not exercised to be offered on the MTA and dates of the rights auction will be announced by way of a notice within the day before the Rights Auction commences.

So in contrast to German rights issues, there seems toi be no automatic auction for the initial subscription right holders, but a general auction for non-exercised rights.

For some reason, I couldn’t find a more detailed prospectus from EMAk. However, for the portfolio I will exercise all subscription rights which I bought in the last week.


  • In the press release, they say definitely, that one can exercise the subscription rights until Dec, 13th, and my broker allows it effectively until Thursday (Friday, 03:00 EST). So it would be an advantage to wait until Thursday.

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