STOCKS NEWS EUROPE-Bond offering weighs on Pop Milano

Italy's Banca Popolare di Milano (PMII.MI) falls 3.9 percent to 3.8825 euros, the biggest loser in Milan's FTSE Mib , penalised by the poor result of its bond offering.

The bank said late on Tuesday its offering of convertible bonds to both shareholders and to holders of an existing bond, which closed last Friday, was only 31.6 percent subscribed, raising 219.6 million euros.

"The market is disappointed by the subscription ... and only sees the negative effect of (this) even though it could be seen as a positive because of the less dilutive effect of the convertible," says Serge Escude, responsible for equity research at Cassa Lombarda.

Reuters Messaging rm://andrea.mandala.reuters.com@reuters.net