By Charles Penty
Feb. 1 (Bloomberg) -- Banco Sabadell SA fell the most in
more than two years in Madrid trading after bolstering capital
through a 410.7 million-euro ($563 million) share sale.
The lender placed 126.4 million shares at 3.25 euros each,
the Sabadell, Spain-based bank said in a filing with regulators
today. Yesterday’s closing share price was 3.49 euros.
Sabadell said last night it would sell new shares and buy
back debt for less than face value to increase its core capital
ratio, a measure of solvency, to 8.8 percent from 8.2 percent at
the end of 2010. Spanish lenders are strengthening their balance
sheets to counter investor concerns about real-estate losses.
Sabadell fell as much as 7.2 percent in Madrid after
resuming trading following a suspension. The shares were down
6.3 percent at 3.28 euros as of 10:46 a.m. local time.
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