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National City The Third US Bank To Seek External Funding
April 2008 | Top StoriesSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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National City Corporation, the US's tenth-largest bank by deposits, became the latest bank to seek funds via external sources as the credit crunch is continuing to hit the US financial sector. On April 21, the bank announced that it was planning to raise US$7bn from a group of investors led by private equity firm, Corsair Capital, which is investing US$985mn. Under the plan, investors will pay US$5 a share for the stake, higher than US$3 a share that potential bank buyers considered offering, although it is still a 40% discount to the company's April 19 closing price of US$8.33. Peter