10 nov.: Microsoft CEO Says Surface Sales Starting 'Modestly' - ..
10 nov.: Representatives of Toyota Group Visit Indonesia, Express Renewed ..
10/11/2012 12:31:00

Banco Popular Sets Steep Discount for Big Rights Issue

Related content
15 févr. - 
JPMorgan Chase annonce le lancement de nouveaux program..
02 févr. - 
Bank of America déclare ses résultats financiers pour l..
04 janv. - 
Bank of America annonce des mesures au quatrième trimes..
Related debate
23 août - 
Der er nok nogen af Jer som har bemærket at Bank of Ame..

By Ilan Brat

MADRID--Spain's Banco Popular Espanol SA (POP.MC) 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. (BAC), and J.P. Morgan Chase & Co. (JPM)--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

(END) Dow Jones Newswires

November 10, 2012 06:31 ET (11:31 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

10 nov.: Microsoft CEO Says Surface Sales Starting 'Modestly' - ..
10 nov.: Representatives of Toyota Group Visit Indonesia, Express Renewed ..

Envoyer un commentaire

Related debate

  • 1 semaine
  • 1 mois
  • 1 an
Ingen indlæg

Annonces

Actualité la plus lue

  • 24 heures
  • 48 heures
  • 1 semaine
1
PUBLIC SYSTEME HOPSCOTCH : ERRATUM: Nombre de d'actions et droits de vote composant le capital social - juillet2014
2
RENAULT : NOMINATIONS AU SEIN DE LA DIRECTION DE RENAULT
3
CORRECTION:Fromageries BEL : résultats du 1er semestre 2014
4
Artprice bouleverse le Marché de l'Art en lançant ses tableaux de bords et indices gratuits et payants dès ce 2 septembre 2014.
5
CORRECTION:Unibel : résultats du 1er semestre 2014

Related stock quotes

Bank of America Corp 16,16 0,4% Cours en hausse
UBS N 16,39 0,2% Cours en hausse
JPMorgan Chase & Co 59,40 -0,1% Cours de bourse en baisse
Banco Santander SA 9,94 0,2% Cours en hausse
UBS AG (Switzerland) 17,80 -0,8% Cours de bourse en baisse
Deutsche Bank AG 34,18 -0,4% Cours de bourse en baisse
Banco Santander S.A. ORD.. 602,95 0,7% Cours en hausse
Banco Santander 7,62 0,5% Cours en hausse
Bank of America COM STK .. 16,13 15,2% Cours en hausse
Banco Santander 7,65 1,3% Cours en hausse
JP Morgan COM STK USD1 59,29 0,0% Cours de bourse inchangé
Deutsche Bank 25,77 -0,3% Cours de bourse en baisse

Buy and sell signals

  • Tendance
  • Moneymachine

Related companies
Get access to information and recommendations of related companies with our PLUS package.

You get access to 7 valuable investment tools.

Click here to read more about the PLUS package.
Euroinvestor dans le monde entier: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.com | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Droit d'auteur Euroinvestor A/S 2014   Mentions légales et conditions d'utilisation
Information sur les cours fournies par Interactive Data.
Les données sont différées de 15 à 20 minutes selon les accords avec les différentes bourses internationales.
 
mardi 2 septembre 2014 18:38:44
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20140825.1 - EUROWEB2 - 2014-09-02 18:38:44 - 2014-09-02 18:38:44 - 4 - Website: OKAY