Wilbur Ross Buys a European Bank
Billionaire investor Wilbur L. Ross plans to buy up to 37.8% of NBNK. Initially, he will buy about 21.3 million shares in NBNK for 39 pence each, the company said in a statement today. At a later date, NBNK will make a tender offer to investors for a further 18.9 million shares at the same price.
Essentially, NBNK is a shell company that Ross will use to make further investments in European banks. Ross said, "Given the turmoil in financial services, very few companies can get access to public capital markets so we feel a company like NBNK that is listed and has supportive shareholders will be attractive for a number of companies."
Ross is a well-known distressed debt investors with a proven track record. He scooped up distressed steel companies for pennies on the dollar and made a name for himself.
Once the deal takes effect, Ross will become chairman. Shares popped 15% on the news.