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Commerzbank AG Plans To Raise Capital With New Share Offer-DJ
Dow Jones reported that Commerzbank AG said it plans to raise EUR2.5 billion ($3.25 billion) by selling new shares in a capital increase aimed at repaying German state aid and boosting the bank's equity capital. The price, at EUR4.50 a share, marks a 55% discount to Monday's closing price of EUR9.93, higher than some analysts' expectations of a 35% discount. The subscription period for the new shares runs from May 15 to May 28, roughly in line with the envisaged schedule announced in March. Commerzbank said 20 new shares will be offered for every 21 existing shares held. The new shares are entitled to a dividend as of January 2013, and Deutsche Bank, Citi and HSBC agreed to fully underwrite the capital increase volume. The move will allow the bank to fully repay the remaining EUR1.6 billion in non-voting shares, known as silent participation, still held by the German government's SoFFin financial markets stabilization fund, and the EUR750 million held by Allianz SE.
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