Europe's slew of rights issues set to raise record $100 bln

LONDON, May 22 (Reuters) - Plans by Switzerland's UBS (UBSN.VX) to raise over $15 billion and other big rights issues from European banks and cash strapped firms will see investors asked for a record $100 billion this year.

Companies have already raised $17.7 billion from rights issues and a bulging pipeline is set to see another $83 billion raised, according to Thomson Reuters data. That would easily exceed the $57 billion raised last year in Europe and $74 billion globally, the previous highest totals.

Banks have the biggest deals in the pipeline as they attempt to rebuild capital positions that have been hit by multi-billion dollar writedowns on risky assets and build a bigger capital cushion to face a tough outlook and demands from regulators.

In addition to UBS, Royal Bank of Scotland (RBS.L) is in the process of raising 12 billion pounds ($23.8 billion), the biggest rights issue ever. Its UK rivals HBOS HBOS.L and Bradford & Bingley BB.L and France's Credit Agricole (CAGR.PA) will follow later in the summer.

Consumer products firms are also tapping investors to fund deals: Britain's Imperial Tobacco (IMT.L) plans to raise $9.6 billion to pay for the purchase of Altadis and Danish brewer Carlsberg is seeking $6 billion to buy Scottish & Newcastle.

Against a tough economic and stock market backdrop, most of the rights issues have been at deep discounts to the prevailing market price, which heavily dilutes existing shareholders and puts pressure on share prices.

RBS shares have fallen 12 percent since trading "ex-rights" a week ago, as the sheer size of its offer and the crowded pipeline for new issues has left many investors more selective about taking up all their rights. U.S. investors have also sold shares as they can't participate in the offer, and there is concern underwriters will be left with a sizeable "rump" of shares to place, dealers said.

Rights issues are used more in Europe than elsewhere. They raised more than three-quarters of last year's global total and in 2006 the $56 billion raised in Europe was almost 90 percent of the global total, according to Thomson Reuters data.

The funds raised from rights issues already this year has come from 25 companies. There are 35 issues in the pipeline, including:

EUROPE RIGHTS ISSUE PIPELINE (in billions of U.S. dollars) COMPANY COUNTRY TO RAISE EXPECTED DATE RBS UK 23.8 Q2 UBS Switzerland 15.5 Q2 Imperial Tobacco UK 9.6 Q2 Credit Agricole France 9.1 Q2 HBOS UK 7.9 Q2 Carlsberg Denmark 6 Q3 Turkiye Garanti Bank (GARAN.IS)

Turkey 1.6 Q2 Alitalia AZPIa.MI Italy 1.4 2008 (source Thomson Reuters data, companies):

(Reporting by Steve Slater; editing by Elaine Hardcastle)