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

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 CEST
   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
08:53a TRITAX BIG BOX REIT : Raising GBP150 Million For New Acquisitions (ALLISS)
08:53a SASOL : Reporting Publications for the Year Ended 30 June 2016 and Notice of Annual General Meeting
08:52a Travel firm TUI Group nudges up full-year profit outlook
08:52a NATIONAL GRID : Ofgem Sends Letters To Potential Bidders For National Grid, SSE Assets
08:51a MEDICLINIC INTERNATIONAL : *jefferies cuts mediclinic international target to 812 (833) pence - 'hold'
08:51a MOODY : to Collaborate with Euler Hermes on Credit Ratings for European SMEs
08:50a Oil climbs after industry data shows U.S. inventory draw
08:50a WESTPAC BANKING : Dividend/Distribution - WBCPF
08:50a DISTRIBUIDORA INTER DE ALIMENTACION : La Plaza de DIA opens its online shop on Amazon
08:50a INDUS GAS : Financials
Latest news
Advertisement
Hot News 
-0.27%Asian Shares Hit by Japan Bank Jitters, Oil Troubles
Most Read News
09/27 E D F : EDF board confirms approval for Hinkley Point decision
09/27 Nike orders miss estimates as competition heats up
09/27 KOREAN AIR LINES : South Korea court says it has not yet decided whether sale of Hanjin Shipping is needed
09/27 WELLS FARGO : claws back part of CEO, other executive's salary
09/27 JPMORGAN CHASE : Chase details how it invests $1.3M to improve jobs skills in Detroit
Most recommended articles
09/26Predicting the U.S. Elections With The WMA Trump/Clinton Barometer
02:49aDJBusiness Watch -- WSJ
02:49aDJUBISOFT ENTERTAINMENT : Faces Major Test in Battle With Vivendi -- WSJ
02:49aDJGENERAL MOTORS : Promoting Women Is Crucial -- WSJ
02:49aDJYAHOO : Some CEOs Retain Jobs After Mergers -- WSJ