Guindos Outlines Future Preference Share Rules, Vanguardia Says

Spanish Economy Minister Luis de Guindos said banks that plan to issue preference shares in the future will have to sell 50 percent of the total to institutional investors, La Vanguardia reported.

“Individual investors will have to be informed of the risk they are taking on,” de Guindos told La Vanguardia during an interview yesterday in Barcelona.

De Guindos also said that nationalized banks including Catalunya Caixa and Bankia SA (BKIA) will receive fresh capital and be privatized once bad assets are transferred to a bad bank that will be operational before the end of the year

To contact the reporter on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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