Ambac Reverses Decision to Split Company
According to a "Financial Times" report , the second biggest U.S. Bond insurer Ambac Financial Group Inc has decided against splitting in two as part of a $2 billion to $3 billion recapitalization.
Under a recent proposal Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance business with potentially lower ratings, said the "Financial Times".
Eight banks led by Citigroup and UBS are preparing to inject around $2 billion or more into Ambac. The bond insurer has made no comments regarding the report.
Published on March 4, 2008
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