FRANKFURT (Thomson Financial) - Troubled German bank IKB Deutsche Industriebank AG said Saturday it would launch its delayed operation to raise capital next week, with shares being offered at 2.56 euros each.
The state-owned KfW bank, the main shareholder in IKB, is expected to fund the operation to the tune of 1.25 billion euros, IKB confirmed in a statement.
The subscription will be open from July 29 to Aug 11, but the fresh cash will not be immediately available, as it depends on a decision by the European Commission whether or not KfW's participation constitutes illicit aid.
This decision is expected in October, the IKB statement said.
The bank has already said that it will get by in the meantime with a 1.5-billion-euro credit line established by KfW.
IKB has also been backed by several billion euros in funds gathered by the German government and private German banks.
IKB was the first German bank to be hit when the US market for high risk, or subprime, mortgages collapsed a year ago.
KfW owns around 45 percent of IKB, but has put that stake up for sale. tf.TFN-Europe_newsdesk@thomson.com afp/ak 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.