Dexia Fights Austrian KA Finanz Capital Cut

Published: April 24, 2012; 14:47 · (Vindobona)

Franco-Belgian bank Dexia is contesting an equity capital cut at Austrian state-owned "bad bank" KA Finanz.

Dexia Fights Austrian KA Finanz Capital Cut / Picture: © Dexia

Austria was set to inject around € 609m ($ 799.3m) and provide guarantees worth another € 250m for KA Finanz, the bad bank split off after the country nationalised Kommunalkredit in 2008.

Dexia, a co-owner of Kommunalkredit before it was nationalised, faces a € 150m hit from the previously announced recapitalisation of KA Finanz, the paper said. It said negotiations were…

This article includes a total of 82 words.

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