Question by Tristan (Limoges): “I have actions from Crédit Agricole which currently carry out a capital increase. What will happen if I do not do any approach?”
Nothing will happen for you. Each Crédit Agricole action that you hold until June 5, 2008 gives you the right to a preferential subscription right. Each shareholder has the right to subscribe to a number of actions determined in proportion to the number of actions he holds. More concretely, the Green Bank grants you an action for an action at a price of 10.60 euros per unit, i.e. a discount of 37.20 % compared to the closing price of June 3, 2008, for three actions held.
This preference given to shareholders expires on the evening of June 24. This means that, after this period, you will no longer be able to buy shares at a price of 10.60 euros, but at the market price. If you do not give any indication to your bank, you will remain holder of your current actions, whose market value will take into account the arrival of new actions. Moreover, the title has already been adjusted by -18 % between the announcement of the capital increase on June 6, and June 9. Since then, he has angs around 14 euros. For its part, Crédit Agricole will take note of your non-registration. And if your actions are on a securities account opened in a regional or LCL agency agency, the management of the establishment will sell the preferential subscription rights which were reserved for this day market conditions. This sale will have no impact for you.
To date, the Crédit Agricole price has been at its lowest historic, since its IPO at the end of 2001. For you, this means a certain shortfall. Doing nothing may not be the best solution. At 10.60 euros, preferential rights can allow you to reduce your losses. For example: if you bought 20 shares at 19 euros, your starting bet is 380 euros and your latent loss to date is 26 %. With the capital increase, you can acquire 6 shares. Your total bet increases to 443.6 euros, or 17.74 euros per share, and your latent loss is reduced to 21 %.
If you think the lessons will go up, it seems wise to subscribe. If, conversely, you do not take advantage of it, it is because you have little hope of seeing the title return to its introductory course (19 euros), or even more (35 euros, the highest level historically) and at least reselling without making profits. Then ask yourself the question of the interest of keeping Crédit Agricole shares in your portfolio.