Børsens News Service in English
Amager Bank's Share Value "Could Fall Further"
27-07-2010
14:37
Shares in troubled Amager Bank could fall even further in the coming weeks, according to Berlingske Business. The newspaper writes today that the bank’s own figures show that its shares could fall as low as DKK 5 if a new issue is under subscribed.
Amager Bank’s share value nosedived 25 percent in the opening hours of Monday’s trading on the news that it is to issue new shares to existing shareholders at a discount of 82.5 percent compared to Friday’s closing price. The new batch of shares will be offered as part of an attempt to meet refinancing requirements demanded by the state’s Financial Stability Company, which requires DKK 750 million to provide a guarantee of DKK 13.5 billion. The announcement means that existing shareholders will need to invest substantially more in the bank to prevent a dramatic reduction in the value of their current holdings.
Last week the bank’s main shareholder, Karsten Ree, announced that he was to end current efforts to support the bank using his own capital. Should the bank collapse, it could cost the state up to DKK 3 billion in compensation
Amager Bank’s share value nosedived 25 percent in the opening hours of Monday’s trading on the news that it is to issue new shares to existing shareholders at a discount of 82.5 percent compared to Friday’s closing price. The new batch of shares will be offered as part of an attempt to meet refinancing requirements demanded by the state’s Financial Stability Company, which requires DKK 750 million to provide a guarantee of DKK 13.5 billion. The announcement means that existing shareholders will need to invest substantially more in the bank to prevent a dramatic reduction in the value of their current holdings.
Last week the bank’s main shareholder, Karsten Ree, announced that he was to end current efforts to support the bank using his own capital. Should the bank collapse, it could cost the state up to DKK 3 billion in compensation
*****||*****Amager Bank's Share Value "Could Fall Further"*****||*****Shares in troubled Amager Bank could fall even further in the coming weeks, according to Berlingske Business. The newspaper writes today that the bank’s own figures show that its shares could fall as low as DKK 5 if a new issue is under subscribed.*****||*****
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