Ambac decides not to split in two - FT
Tuesday March 4, 2:31 pm ET
NEW YORK (Reuters) - Ambac Financial Group Inc (NYSE:ABK - News), the second-biggest U.S. bond insurer, has decided against splitting in two as part of a $2 billion to $3 billion recapitalization, the Financial Times reported on Tuesday, citing insiders.
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The FT said that under a recent proposal, Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance business with potentially lower ratings.
Eight banks, led by Citigroup (NYSE:C - News) and UBS (VTX:UBSN.VX - News), are preparing to inject $2 billion or more into Ambac.
Paul Burke, in fixed-income investor relations at Ambac, said the company has never commented on whether it would split and has always said it would support both the structured finance and municipal bond businesses and would aim for triple-A ratings for both.
(Reporting by Yinka Adegoke; additional reporting by Dan Wilchins; editing by John Wallace)
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