SocGen launches rights issue at steep discount

Societe Generale, the French bank reeling from a rogue trading scandal, launched a rights issue at a steep discount yesterday, aiming to raise 5.5 billion euros ($7.97 billion) to bolster its balance sheet.

The one-for-four rights issue at 47.50 euros per share is 38.9 percent below Friday's closing price and dilutes the share capital by some 20 percent. The bank's shares fell 6 percent to 73 euros by 0806 GMT.

SocGen revealed plans for the capital increase on Jan 24 when it unveiled 4.9 billion euros of rogue trading losses. Jerome Kerviel, the trader at the heart of the scandal, was jailed on Friday.