MBIA cutting shareholder dividend
-
- January
- 9
MBIA Inc., the giant bond insurer based in Armonk, said this morning it will slash its quarterly dividend, one of several steps it is taking to preserve capital.
The dividend to shareholders will drop 13 cents a share to 21 cents a share, the company said. The move will save $80 million a year, the company said.
MBIA said it also plans to sell off $1 billion in debt and to buy reinsurance to cover a portion of its portfolio.
In December, the company announced that private-equity firm Warburg Pincus agreed to invest up to $1 billion.
The bond insurer has been hurt recently by the weak U.S. housing market and the crisis in subprime loans and is trying to preserve its top credit rating.
MBIA shares were down 22 cents to $13.76 in early trading. The shares have lost 80 percent of their value since the start of last year.
This entry was posted
on Wednesday, January 9th, 2008 at 11:01 am by Allan Drury.
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