INSTANT VIEW 4 - Ambac to raise at least $1.5 bln

NEW YORK (Reuters) - Ambac Financial Group Inc said on Wednesday that it will sell at least $1.5 billion of stock and equity-linked securities to help boost capital levels at its main insurance unit, which had been facing potential ratings downgrades.

Ambac said it will sell at least $1 billion of common stock. It also plans to sell at least $500 million of equity units. Its shares fell 15 percent in afternoon trade. Story:

MARKET COMMENTS

MICHAEL HOLLAND, PORTFOLIO MANAGER AND FOUNDER OF HOLLAND & CO,

NEW YORK

"For me, the big story is the market's hypersensitivity to every single announcement as it relates to the monoline insurers. The sensitivity to bad news in this area, I think, is symptomatic of the market's deeper concern with the financial system."

Asked if Ambac's plan goes far enough, he said:

"The market is saying it's not sufficient, so it's not sufficient. At the end of the day, whether it's a bank, insurer or S&L, they're all based on the confidence of the market place."

CLIFTON HOOVER, CO-CHIEF INVESTMENT OFFICER, DREMAN VALUE