Brazil's Bradesco proposes capital increase

Brazil's Bradesco, the country's largest private bank, proposed a stock split and share issue worth 700 million reais on Monday to raise capital to modernize and expand its offices.The issue of 17.5 million ordinary and preferred shares would also be used to boost its funds in expectation of an increase in demand for credit over the coming years, Bradesco said in a statement.

The bank's shareholders will vote on the proposal Dec. 9.Under the plan, current shareholders will initially receive two shares for every one they hold in a split that should reduce the stock's price. The bank will then offer the new shares at 40 reais each.

Bradesco's preferred stock was down 1.01 percent at 166 reais in late trade, underperforming a 1.17 percent rise by the market's benchmark Bovespa index .

(From Reuters, November 22, 2004)

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