FRANKFURT (Thomson Financial) - The shareholders of state-owned bank HSH Nordbank have agreed in principle to increase the institution's capital by almost 2 billion euros in order to provide it with more financial flexibility to expand, according to a prerelease of Handelsblatt newspaper, citing shareholder sources.
It said the bank will use the new capital to expand its shipping and transport financing business.
The city state of Hamburg holds 35.38 percent capital in the bank, the federal state of Schleswig-Holstein has 19.96 percent, U.S. investment banker Christopher Flowers 26.61 percent and the savings bank group Sparkassen Schleswig-Holstein 18.05 percent.
The report said Flowers would have to inject 300 million euros so that its shareholding will not be diluted. marilyn.gerlach@thomsonreuters.com mog/hjp COPYRIGHT Copyright Thomson Financial News Limited 2008. 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.
© 2008 AFX News
