January 4, 2011
Greece's Piraeus Bank on Tuesday defended its decision to offer new shares at a deep discount in its €807 million ($1.08 billion) rights issue, saying such a move was "customary" in volatile times and that the terms were backed by a significant percentage of shareholders.
But unhappy investors sent the stock price plunging 12% to €3.15 on Tuesday.
Piraeus, Greece's fourth-largest lender, said late Monday it was offering 807 million new shares at €1 each and at a subscription ratio of 12 new ordinary shares for every five existing ones.
The offer is 43% below the theoretical ex-rights price—a figure that takes into account the impact of the new shares once they are issued—and 72% lower than Piraeus's closing share price Monday.
More
See also
No comments:
Post a Comment