National City to get $6 bln amid mortgage crisis
Güncelleme Tarihi:
National City Corp. will get about $6 billion from private investors in a deal that provides much-needed capital to a Midwestern bank heavily exposed to the worsening mortgage and housing market, according to reports.
National City officials were negotiating final terms of the transaction with a group of investors led by Corsair Capital LLC, a New York private equity group, The Wall Street Journal and The Plain Dealer reported on their Web sites Sunday, citing sources they did not identify.
The parties were aiming to seal the deal by Monday, the Journal said. National City is scheduled to report first-quarter results Tuesday.
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National City spokeswoman Kelly Wagner Amen declined to comment to The Associated Press on the newspaper reports. A message seeking comment was left with Corsair chairman Nicholas Paumgarten.
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Cleveland-based National City is Ohios biggest financial institution, with assets of $150 billion. But the mortgage crisis has left it with troubled assets, and its stock has plunged to multi-year lows.
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Like Washington Mutual Inc. and Wachovia Corp., which also got huge cash infusions this month, National City is offering its financial rescuers shares at prices substantially below the prevailing market price, while diluting the holdings of existing shareholders, the Journal reported.