Natixis SA's plans to raise €3.7 billion ($5.4 billion) by selling new shares suffered a setback Thursday, when its stock slumped 9% after it
revealed a larger-than-expected second-quarter loss.
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Shares in the bank traded Thursday morning at €5.19, down €0.50 on their previous close, after the lender said it had lost €1.02 billion ($1.5 billion) in the second quarter. The bank's value has tumbled 14% since Aug. 22, raising the possibility that it will have to sell more shares to raise the reserves it's seeking.
Shareholders in Natixis are due to meet Friday to vote on the share sale, which the bank's board says is needed to boost reserves. French daily La Tribune reported that the bank would discount the shares in its capital increase by 35% to 40%. Some shareholders have opposed the deal. See the full story on
TheDeal.com for details on which shareholders are against the offering, and what they suggest instead. --
Paul Whitfield
