Thursday November 5, 09:24 PM
UPDATE 1-Criteria to make 1 billion euro bond issue
MADRID, Nov 5 (Reuters) - Spain's Criteria CaixaCorp SA said on Thursday it could launch an up to 1 billion euro ($1.49 billion) bond issue, following plans to double its stake in Austria's Erste Group Bank AG.
Last
week, Criteria -- the investment arm of Spain's largest savings bank La Caixa -- said it would subscribe to Erste's planned rights issue and raise its stake in the Swiss bank, which is suffering under mounting loan losses, to 9.9 percent.
Criteria did not specify how it would use the funds from the bond issue, saying only that top management would decide the terms of the issue and could pull the deal if market conditions were unfavourable.
Earlier, the investment company announced a 9 percent rise in nine-month net profit, excluding one-off items to 970 million euros, underpinned by a positive performance from its main holdings.
Net profit including one-offs rose 17 percent to 1.135 billion euros, boosted by capital gains from the sale of 1 percent of Telefonica SA.
The net value of its assets rose to 5.19 euros per share at the end of September from 4.24 euros at end-Decenber.
(Reporting by Jose Rodriguez and Tracy Rucinski; editing by Andre Grenon) ($1=.6734 Euro) Keywords: CRITERIA/
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