Warburg Pincus owns 16.5 percent stake in MBIA
-
- February
- 11
Manhattan-based private-equity giant Warburg Pincus LLC increased to 16.5 percent its stake in MBIA Inc., the Armonk-based bond insurer whose stock has fallen 80 percent the past year due to the company’s exposure to subprime mortgages.
Warburg Pincus said in a filing with the U.S. Securities and Exchange Commission that it recently bought 16.1 million shares and has warrants to buy an additional 8.69 million shares at $40 each.
MBIA last month reported a quarterly loss of $2.3 billion, or $18.61 a share, the largest loss in its history.
The Warburg investment is one of several steps MBIA is hoping will stabilize its finances.
MBIA, which is fighting to preserve its top-notch AAA credit rating, recently cut its dividend by 62 percent to preserve cash. The company also raised $1.5 billion through a $1 billion surplus notes offering.
Warburg Pincus said in the SEC filing it made the $500 million investment in MBIA shares because it believes the stock “represented and continues to represent an attractive investment.�
This entry was posted
on Monday, February 11th, 2008 at 2:09 pm by Allan Drury.
You can follow any responses to this entry through the RSS 2.0 feed.
Category: Corporate doings
Print
| 
Email
