Saipem shares plunge after cash call falls short

MILAN (Reuters) -Shares in Italy’s Saipem fell as much as 40% on Tuesday after investors subscribed for only 70% of its 2 billion euro cash call, signalling limited confidence in the turnaround plan for the Italian energy services group. Saipem said on Monday it had raised around 1.395 billion euros ($1.4 billion) at the closing of a hyper-dilutive capital increase launched last month as part of a plan to try to stabilise its finances and refocus its business after a surprise profit warning in January. A pool of banks has pledged to mop up any unexercised rights to guarantee the full amount of…

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