Corsair and another private equity investor are contributing $985 million to the deal, with some of National City's large institutional shareholders also chipping in funds. The consortium will buy 126.2 million common shares at $5 a share, a 40% discount to National City's closing price of $8.33 on April 18, and get $6.4 billion in convertible perpetual noncumulative preferred stock, which is also convertible to common shares at $5 a share.
The move is yet another blow for National City's shareholders, who have seen the stock steadily beaten down from its 52-week high of $38.32. As Ohio's largest subprime lender, the sagging real estate market has hit National City hard. The bank reported a first-quarter loss of $171 million, or 27 cents a share, compared with profit of $319 million, or 50 cents a share, a year earlier. - George White
See the full story from TheDeal.com
See related story about other banks that may need capital from Dealscape
Liquidity watch
A look at the stock performance of some troubled financial institutions |
| Name |
Open |
Last price |
Change |
Mkt cap
($mill.) |
| HBOS plc |
561 |
540.00 |
-18.00 |
20242.80 |
| CapitalSource Inc. |
13.43 |
12.77 |
-0.54 |
2869.32 |
| Lehman Brothers Holdings Inc. |
45.19 |
44.89 |
-0.61 |
24853.17 |
| National City Corp. |
6.46 |
6.21 |
-2.12 |
4024.92 |
| CIT Group Inc. |
13.29 |
12.97 |
-0.53 |
2480.25 |
| Washington Mutual Inc. |
11.68 |
11.60 |
-0.29 |
10238.28 |
|
Source: TheDeal.com |
Add National City Corp. to the list of banks taking money from private investors. The Cleveland bank is planning to raise $7 billion from an investor group led by New York private equity firm Corsair Capital LLC. 
