Belgo-Dutch group Fortis today announced details of a discounted rights issue needed to help fund its part in the takeover of rival ABN Amro.
The bank said it plans to sell 18.8m shares at €15 each which represents a discount of 43.7% to Thursday's closing price.
Fortis, which has bid for ABN AMRO with Royal Bank of Scotland and Spain's Santander, said in a statement it expected to raise €13.2 billion from the rights issue.
The exchange ratio for the rights issue, which totals €13.4 billion before costs, is two new shares for three existing shares held at the market close on 24 September.
Chief Financial Officer Gilbert Mittler said today the company needed to raise a further €7.4 billion in addition to the €13 billion rights issue, and €3.6 billion raised from asset sales and debt.
Fortis also said today it expected to report 2007 profit before divestments of at least €4.2 billion.
It said its exposure to subprime mortgages, the riskiest property loans often extended to people with payment difficulties, would have no negative impact on results.
