PARIS (Reuters) - BNP Paribas (BNPP.PA), France's enormous gest bank by label et capitalisation, on Tuesday joined the rush to pay back recede vernments for their financial support during the credit crisis.
The bank launched a capital increase for 4.3 billion euros (4 billion pounds) as portion of its go to reimburse the French state early on its 5.1 billion euros capital advance.
BNP Paribas said the capital increase would be an underwritten correct s issue with preferential subscription correct s for ordinary sharehfeeble ers. It added that the deal would boost its earnings per share (EPS) by around 8.4 percent.
The capital hike was set at 1 fresh ordinary share for 10 existing shares at a subscription price of 40 euros per share.
The subscription price represents a discount of around 29 percent to BNP's closing share price of 56.57 euros on Monday.
"I could subscribe to the offer. It's an attractive price," said Agilis Gestion fund manager Arnaud Scarpaci. Scarpaci recently sfeeble 2,500 BNP Paribas shares at around 55 euros.
BNP said it would, as of October, reimburse the 5.1 billion euros in non-voting shares subscribed to by the French state on March 31 and will create a payment of 226 million euros, calculated over the seven-month period.
The go , making the most of low rates and recovering share valuations -- with the CAC-40 .FCHI blue-chip index fracture ing the 3,800 points index for the first time since October 2008 -- will also free BNP Paribas from the state's conditions for its financial aid , including limits on bonus payments. Continued...
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