Services

09 nov.: ATARI : MODALITÉS DE MISE À DISPOSITION DES DOCUMENTS PRÉPARATOIR..
12 nov.: NOUVEAUX SUCCES POUR MEDASYS : solution de Gestion de Laboratoire..
10/11/2012 12:31:00

Banco Popular Sets Steep Discount for Big Rights Issue

Related content

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.

09 nov.: ATARI : MODALITÉS DE MISE À DISPOSITION DES DOCUMENTS PRÉPARATOIR..
12 nov.: NOUVEAUX SUCCES POUR MEDASYS : solution de Gestion de Laboratoire..

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
CREDIT AGRICOLE SA : DECLARATION DES DROITS DE VOTE NOVEMBRE 2016
2
Maroc Telecom : Information mensuelle relative au nombre total de droits de vote et d'actions composant le capital social_Novembre 2016
3
Avec giropay, les marchands, Marketplaces et PSPs connectés à Limonetik disposent d'un accès direct à 35 millions de consommateurs Allemands
4
HF Company : Information relative au nombre total de droits de vote et d'actions ... - nov 2016
5
Gain de productivité et d'espace : Touax Solutions Modulaires passe progressivement de l'externalisation à la dématérialisation de ses factures clients avec Esker

Related stock quotes

Buy and sell signals

  • Tendance
  • Moneymachine
Acheter
Vendre
Acheter

Droit d'auteur Euroinvestor A/S 2016   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 6 décembre 2016 06:41:04
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20161205.1 - EUROWEB3 - 2016-12-06 06:41:04 - 2016-12-06 06:41:04 - 4 - Website: OKAY