Deals
Popular Falls to Lowest in 26 Years on Rights Issue Plan
- Spanish bank seeking $2.8 billion in capital to cover losses
- Lender may suspend dividend as mops up from property bust
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Banco Popular Espanol SA plunged after disclosing plans to sell about 2.5 billion euros ($2.8 billion) of new stock to cover losses from Spain’s decade-old property bubble as regulators press European banks to clean up their balance sheets.
Popular will offer 2 billion shares at 1.25 euros, a 47 percent discount from its closing price Wednesday of 2.356 euros, the Madrid-based lender said in a filing to regulators Thursday. The bank said it may post a loss for 2016 and suspend its dividend as “certain uncertainties” could lead to 4.7 billion euros in provisions in 2016.