CORRECTED - UPDATE 2-Spain's La Caixa places Criteria exchangeables

(Corrects deal size to 837.7 million euros)

MADRID, May 20 (Reuters) - Spanish savings bank La Caixa said on Tuesday it had successfully placed 837.7 million euros ($1.30 billion) of bonds exchangeable into shares in its holding company Criteria Caixa (CRIT.MC: Quote, Profile, Research, Stock Buzz).

La Caixa said the bonds would be exchangeable into 148 million ordinary shares in Criteria, equivalent to 4.4 percent of its share capital.

It said the conversion price was set at 5.6601 euros, which compares with a closing price of 4.42 for Criteria on the Madrid stock exchange.

In a statement, La Caixa said overall demand for the bonds was 3.3 billion euros and the placement was completed in four hours.

Criteria shares fell after the issue was announced and closed down 4.95 percent, making it the largest faller in the Ibex 35 index .IBEX, which itself declined 1.79 percent.

In an earlier statement to the stock exchange regulator, the bank said the right to convert the shares can be exercised during the three-year lifetime of the bonds.

The bonds, which carry an exchange premium of 25-30 percent, have a coupon of 3.25-3.75 percent.

The bank said it bought a further 1.4 percent stake in Criteria on Monday at 4.85 euros per share, which means its holding will not be diluted below 75 percent, despite the issue of the convertible bonds.