Belgium, France to own almost 96 percent of Dexia
BRUSSELS (Reuters) - Belgium and France are set to own almost 96 percent of Dexia (DEXI.BR), with the free float slipping to 1.9 percent, after the two nations agreed to keep the lender afloat with 5.5 billion euros ($7.0 billion) of fresh funds.
Dexia's board has approved the plan, which will now be put to an extraordinary shareholder meeting on December 21, saying the states would buy new preference shares at 0.19 euro apiece.
Belgium will pay 2.9 billion euros and France 2.6 billion. Combined, they will receive 28.95 billion new preference shares.
There are currently about 1.95 billion outstanding shares, with Belgium and France already both holding stakes of 5.7 percent. French state bank Caisse des Depots et Consignations (CDC) is the largest shareholder with 17.6 percent and CNP Assurances, a CDC subsidiary, 3.0 percent.
The existing free float is 30.4 percent and it will drop to 1.9 percent after the capital injection.
The deal needs to be approved by European Union regulators. ($1 = 0.7856 euro) (Reporting By Philip Blenkinsop)
NEW YORK - U.S. stocks finished mostly flat on Thursday as investors paused after a rally in the previous session, though the Dow closed at its second record high in a row. | Video
WASHINGTON - Start-up companies will be able to raise much more capital through certain public stock deals without facing costly regulatory burdens under a proposal announced by U.S. securities regulators on Wednesday.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.