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Mexico's Banorte plans up to $3 billion share offer, stocks tumble
June 12, 2013 / 2:10 PM / 4 years ago

Mexico's Banorte plans up to $3 billion share offer, stocks tumble

MEXICO CITY (Reuters) - Mexican bank Grupo Financiero Banorte (GFNORTEO.MX) said on Wednesday it is planning a share offering in Mexico and abroad for a total of up to $3 billion, pending regulatory approval in news that sent its shares tumbling more than 9 percent.

Banorte said the offer would include a primary public offering in Mexico, and a private offering in some foreign markets, including the United States.

Shares in the company sank 9.27 percent to 73.99 pesos in morning trading after the announcement, falling to their lowest level since November 2012.

The bank, Mexico’s fourth largest by assets, did not say what the proceeds would be used for, but said it “continued with its strategic plans for expansion and to consolidate itself as a leader in Mexico”.

“It is growing, it is buying things. That is no bad thing,” said Gerardo Roman, head of stock trading at Actinver brokerage in Mexico City

“It dilutes the share. If I was a shareholder, I would rather sell shares and take part in the offer. It is very natural,” he added.

Banorte on Tuesday said it would buy the half of an insurance and pension business belonging to Italian insurer Generali SpA (GASI.MI) that it does not already own for $857.5 million.

Banorte is the biggest Mexican private bank in Mexican hands, with the top three banks controlled by foreign companies.

Reporting by Gabriel Stargardter and Elinor Comlay; Editing by Simon Gardner and W Simon

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