Loss leaders in Spain.
On 13th June the Financial Times stated in an article linked here, that - “There are three big things wrong in Spain – the labour market; the pensions system and the cajas,” says one Spanish bank boss. “But the real milestone in the caja restructuring is the IPO of Bankia. If this goes through then 70 per cent of the problems in the sector will be solved. If the IPO fails, it will take a lot longer.”
Well, as I posted last evening, the details of the first sale of shares will become known today, to avoid risk of failure they will be priced at a substantial discount to the "supposed" value of the savings back according to its own accounts. The Market Watch page of the WSL has more on this latest EU crisis hotspot, linked here.
A decision to launch the shares at a discount of 0.5 TO 0.6 of book value, compared to the 0.8 factor to book value for La Caixa, is evidence enough that failure has already been accepted for this launch as determined by the FT!
Well, as I posted last evening, the details of the first sale of shares will become known today, to avoid risk of failure they will be priced at a substantial discount to the "supposed" value of the savings back according to its own accounts. The Market Watch page of the WSL has more on this latest EU crisis hotspot, linked here.
A decision to launch the shares at a discount of 0.5 TO 0.6 of book value, compared to the 0.8 factor to book value for La Caixa, is evidence enough that failure has already been accepted for this launch as determined by the FT!
Labels: Now Spain
posted by Martin at 7:50 AM
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