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  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

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 [email protected]

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 "Economy & Forex"
12:11a 2017 STEEL FC LOOK BACK : Matthew Mahoney
12:08a 21st Century Fox in $90 million settlement tied to sexual harassment scandal
12:06a TRAFFIC ADVISORY : Old Town Dickens Street Faire and Parade this Saturday
12:06a CITY OF CHANDLER AZ : Holiday to affect trash/recycling collection schedule Read More ...
12:01aDJEuro Falls After German Coalition Talks Collapse
11/20 UN WOMEN UNITED NATIONS ENTITY FOR GENDER EQUALI : EU, ILO and UN Women join forces to realize women migrant workers' rights and opportunities in the ASEAN region
11/20 GOVERNMENT OF BRITISH COLUMBIA : Old Vernon Road at Acland Road closed during construction
11/20 CATHOLIC CHARITIES ARCHDIOCESE OF NEW YORK : Defends Dad Separated from Son with Downs Syndrome
11/20 ISED INNOVATION SCIENCE AND ECONOMIC DEVELOPMEN : Minister Chagger speaks at National Aboriginal Capital Corporations Association annual meeting
11/20 Uber hit with $8.9 million fine in Colorado over unqualified drivers
Latest news "Economy & Forex"
Advertisement