ABK looking good again too.
Deal to pump capital into Ambac may be reached next week: report
SAN FRANCISCO, Feb 23, 2008 (Thomson Financial via COMTEX) -- A deal to infuse
roughly $3 billion of capital into Ambac Financial Group Inc. could be reached
as early as Monday or Tuesday, according to a media report late Friday that
cited sources.
The arrangement, which would involve raising about $2.5 billion in equity and
issuing $500 million worth of debt, would require a green light from the credit
ratings services, the Wall Street Journal reported on its Web site.
The deal also depends on broad participation from banks who hold securities that
are at risk of downgrade if ratings on the troubled bond insurer are cut, the
Journal said.
Earlier Friday, the Financial Times reported a group of banks was preparing to
raise $2 billion to $3 billion for Ambac to help the company meet its rating
agency capital requirements.
Shares of New York-based Ambac closed the regular session up $1.48, or about
16%, at $10.71. Katherine Hunt kh/gm
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved. The copying,
republication or redistribution of Thomson Financial News Content, including by
framing or similar means, is expressly prohibited without the prior written
consent of Thomson Financial News.
MMMM
By Staff Reporter
(C) 2008 XFN, Inc. All rights reserved.
-0-
Market Data 
Markets 
AI
