Portugal’s Banco Espirito Santo shares plummeted by 15% after it announced plans to raise €1B in capital through a rights issue.
The offering price is set at a 66% discount to the closing price yesterday [Wednesday].
That is a very desperate bank.
But this is what the FT wrote six days ago:
‘As of Apr 06, 2012, the consensus forecast amongst 14 polled investment analysts covering Banco Espirito Santo SA advises that the company will outperform the market.’
Hmm. Another reason why I won’t be renewing my FT subscription this year. Note the pompous proclamation one gets when quoting from FT ‘analyses’: