Dexia shareholders clear sale of U.S unit FSA
BRUSSELS, June 24 (Reuters) - Dexia (DEXI.BR) investors authorised the Belgian-French financial group to create new shares it may eventually issue in exchange for state guarantees, clearing the final hurdle for Dexia's $722 million sale of FSA.
Wednesday's vote, which won the approval of more than 99 percent of the present shareholders, cleared Dexia to sell U.S. insurer Financial Security Assurance Holdings Ltd (FSA) to bond insurer Assured Guaranty Ltd (AGO.N) by July 1.
Under the deal Dexia will sell FSA for $542 million in cash and 22.3 million Assured Guaranty shares, which traded at $11.04 per share as of 1025 GMT, less than half their year-ago level of $22.24.
"This transaction and the sale of FSA to Assured Guaranty will allow us to strongly reduce the risk profile of the group," Dexia chief executive Pierre Mariani told the assembled shareholders.
Dexia will retain FSA's financial products unit, which has a $16.6 billion portfolio and a current loss of $20 million, Dexia said.
Should the unit's losses exceed $4.5 billion, Belgium and France would guarantee them in exchange for the new Dexia shares approved on Wednesday.
Dexia, the world's largest municipal lender, received a 6.4 billion euro ($9.01 billion) bailout by France, Belgium, Luxembourg and key shareholders in September and later won state guarantees for its new borrowing. ($1=.7106 euros) (Reporting by Anne Jolis; Editing by Greg Mahlich)
