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| Version 1 | Version 2 |
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| UniCredit to raise billions and cut 14,000 jobs | UniCredit to raise billions and cut 14,000 jobs |
| (about 4 hours later) | |
| UniCredit, Italy's biggest bank, is planning to raise €13bn (£10.9bn) and cut 14,000 jobs over the next two years in a bid to return to financial health. | UniCredit, Italy's biggest bank, is planning to raise €13bn (£10.9bn) and cut 14,000 jobs over the next two years in a bid to return to financial health. |
| The bank plans to use the record rights issue to help remove almost €18bn of bad debt from its balance sheet and boost profitability. | The bank plans to use the record rights issue to help remove almost €18bn of bad debt from its balance sheet and boost profitability. |
| UniCredit also plans to close about a quarter of its 3,800 branches. | UniCredit also plans to close about a quarter of its 3,800 branches. |
| The move comes as Italy's third-largest bank, Monte dei Paschi di Siena, tries to avoid a government bailout. | The move comes as Italy's third-largest bank, Monte dei Paschi di Siena, tries to avoid a government bailout. |
| 'Pragmatic plan' | 'Pragmatic plan' |
| Shares in UniCredit, whose financial health is considerably worse than its European rivals, initially fell before rising more than 8% on the Milan stock exchange. | |
| However, the shares has fallen by almost than half this year and the bank will be seeking to raise nearly as much as its market value. | |
| Chief executive Jean Pierre Mustier said it was a "pragmatic plan based on conservative assumptions, with tangible and achievable targets". | Chief executive Jean Pierre Mustier said it was a "pragmatic plan based on conservative assumptions, with tangible and achievable targets". |
| He added: "We are taking decisive actions to deal with our [problem loan] legacy issues to improve and support recurring future profitability to become one of Europe's most attractive banks." | He added: "We are taking decisive actions to deal with our [problem loan] legacy issues to improve and support recurring future profitability to become one of Europe's most attractive banks." |
| The cash call will take place in the first three months of the new year, with the funds used to remove €17.7bn of bad debts from its balance sheet. | The cash call will take place in the first three months of the new year, with the funds used to remove €17.7bn of bad debts from its balance sheet. |
| The bank aims to get its core capital ratio - a key measure of financial strength - above 12.5% by 2019, as well as post net profits of €4.7bn and resume dividend payments that year. | The bank aims to get its core capital ratio - a key measure of financial strength - above 12.5% by 2019, as well as post net profits of €4.7bn and resume dividend payments that year. |
| The job cuts will amount to about 11% of its workforce. | The job cuts will amount to about 11% of its workforce. |
| UniCredit's plans come as a new government takes office in Rome following the decision by prime minister Matteo Renzi to quit after losing a referendum vote over constitutional change. Elections are also expected next year. | UniCredit's plans come as a new government takes office in Rome following the decision by prime minister Matteo Renzi to quit after losing a referendum vote over constitutional change. Elections are also expected next year. |