Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Banco Popular Sets Steep Discount for Big Rights Issue

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/10/2012 | 12:31pm CET
   By Ilan Brat 
 

MADRID--Spain's Banco Popular Espanol SA (>> Banco Popular Espanol SA) said Saturday it would issue a huge amount of new shares to investors at a steep discount to its current price to avoid having to take state aid.

The country's sixth-largest bank by assets said the new shares in the rights issue would be priced at 0.401 euros ($0.51) each, and existing shareholders would receive rights to buy three new shares for each share they already own. Banco Popular's shares closed Friday at EUR1.12.

Earlier this fall, an evaluation of Spain's banking sector found Popular would have a capital shortfall of EUR3.2 billion under heavy economic duress.

The capital increase is part of an attempt to ward off a capital injection from the rescue fund of up to EUR100 billion that Spain negotiated with the European Union for its financial sector this summer. Banks with capital shortfalls and in need of EU funds must submit recapitalization plans that will be evaluated by Spanish and European authorities.

As part of its rights issue, which could be valued at up to EUR2.5 billion, Banco Popular said it had hired 15 banks to underwrite EUR2.08 billion of the increase. Five banks--Deutsche Bank AG (DB, DBK.XE), Banco Santander SA (SAN, SAN.MC), UBS AG (UBSN.VX, UBS), Bank of America Corp. (>> Bank of America Corp), and J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.)--will be global coordinators.

"We're aware that we're asking for sacrifice from shareholders," said Angel Ron, Popular chairman, during a special general shareholders meeting. "But without a doubt, this is an operation for the future, that assures our independence and profitability" and which will ultimately benefit shareholders that buy into the increase at attractive prices.

Write to Ilan Brat at ilan.brat@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
05:04a Cleanup continues after East Toledo train derailment
05:01a Diamond Resorts Reviews - French Cultural Hospitality
05:00a QUALCOMM : Collaborates With Microsoft To Support Windows 10 Devices On Snapdragon
05:00a China top court rules in favor of Michael Jordan in trademark case
05:00a FINANCE VIDEO : Minbos Resources Merger of Cabinda Phosphate Project
04:58a Oil prices rise on U.S. crude stock decline, weaker dollar
04:58a Oil prices rise on U.S. crude stock decline, weaker dollar
04:58a Marcus Hiles - Provides Coats for the Cold Winter to Underprivileged Children
04:57a NEWFOUNDLAND AND LABRADOR BOARD OF COMMISSIONERS O : Weekly maximum fuel prices ~ effective December 8, 2016
04:56a FINANCE VIDEO : Minbos Resources (ASX:MNB) Merger of Cabinda Phosphate Project
Latest news
Advertisement
Hot News 
-13.09%VERA BRADLEY : Shares Drop as Company Slashes Outlook
14.22%SUNPOWER : CEO expects solar panel prices decline to stop next year
7.61%BLACKSTONE LP : Solvay to sell cigarette filter business Acetow to Blackstone
-3.90%CARILLION : sees slowdown in pace of new orders post-Brexit
9.45%STEINHOFF INTERNATIONAL : Poundland shifts away from one price fits all
Most Read News
09:47p HYUNDAI MOTOR : S.Korea worries about growing economic risks, amid impeachment push for President Park
06:22p MEDTRONIC : China says fines Medtronic local unit 118.5 million yuan for price fixing
06:51p Retailer Wal-Mart de Mexico to invest $1.3 billion in Mexico
08:58p TOKYO ELECTRIC POWER : Japan to increase loan to Fukushima operator Tepco to $123 billion -source
06:20p BLACKROCK : adjusts leadership team for its largest mutual fund
Most recommended articles
12/02 Platts considers first addition to Brent basket since 2007
11/30DJCash Crunch Looms Over India's Growth Spurt
10:58p Oil prices rise on U.S. crude stock decline, weaker dollar
10:05pDJMexico Collects $2.65 Billion from 2016 Oil Hedges
10:05pDJBLACKROCK : Signs Preliminary Pact to Move to Manhattan's West Side