Ambac shares resume trading, fall sharply on plan

NEW YORK (Reuters) - Shares of Ambac Financial Group Inc fell sharply on Wednesday after they resumed trading with the bond insurer's announcement it will sell stock and equity-linked securities to help boost capital levels at its main insurance unit.

Traders said investors had been hoping for news of a deal to bail out Ambac instead.

Ambac shares were last down 11.4 percent at $9.50, while shares of MBIA Inc, also a bond insurer, were down 6.2 percent at $12.17.

(Reporting by Caroline Valetkevitch; Editing by Jonathan Oatis)