AFP: Societe Generale launches 5.5 billion-euro capital increase
PARIS (AFP) — Societe Generale on Monday launched a 5.5-billion-euro capital increase -- offering shares at a massive discount -- to cover losses it blames on rogue trader Jerome Kerviel who is to fight his detention in jail.
The French financial giant, which estimates Kerviel's unauthorised trades cost it 4.9 billion euros (7.1 billion dollars) also needs the money to cover growing losses on the US sub-prime meltdown.
In announcing the capital increase, Societe Generale also raised its estimated subprime losses from two billion euros to 2.6 billion euros (3.75 billion dollars).
Shares would be on sale from February 21 to 29 at 47.50 euros per share, nearly 40 percent below their current level, it said. Societe Generale shares fell 2.29 percent to 75.94 euros in opening trade on the Paris stock exchange.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment