Spain's Bankia shares fall 12.5 percent after negative valuation

MADRID Thu Dec 27, 2012 3:14am EST

MADRID Dec 27 (Reuters) - Shares in nationalised Spanish lender Bankia fell 12.5 percent at the opening of the stock market on Thursday after the bank rescue fund FROB disclosed on Wednesday the entity had a negative valuation of 4.2 billion euros ($5.6 billion).

The Spanish stock market regulator had initially classed the shares "under auction" -- a procedure that kicks in when there is a particularly large order to buy or sell a stock and big mismatches between bids and offers.

Shareholders in the lender, who have already lost about 80 percent of their investment since the flotation of the bank in July 2011, face further heavy losses, a source close to the Bank of Spain said on condition of anonymity.

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