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Colonial creditor banks exercise call options

Published 12/15/2008, 04:53 PM
Updated 12/15/2008, 04:55 PM
NWG
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MADRID, Dec 16 (Reuters) - Spain's Colonial said one of its creditor banks had exercised a call option on stock held by the indebted property company on Monday and another was expected to do the same on Tuesday.

In a regulatory filing, Colonial said Goldman Sachs had exercised a call to buy a 3.396-percent stake held in Spanish builder FCC .

Eurohypo was expected to likewise exercise an option to buy 3.396 percent of FCC on Tuesday, in addition to 7.25 percent in Colonial's French unit SFL .

FCC shares closed at 24.65 euros on Madrid's stock exchange, while SFL shares closed at 27.50 on the Paris exchange.

Earlier this month, Colonial set a strike price of 30 euros a share on its 15.45 percent in FCC, and of 35 euros per share in its 33 percent of SFL.

In September, Colonial agreed to sell its FCC and SFL stakes as part of a deal with its creditors -- including Goldman Sachs, Eurohypo, Royal Bank of Scotland and Calyon -- to refinance 7 billion euros of debt.

Colonial had 8.975 billion euros of debt at the end of September.

Spanish property firms have suffered falls of more than 30 percent in house sales this year as a 12-year construction boom has bust amid a global credit crunch.

Martinsa Fadesa, once Spain's biggest property company, filed for administration in July. (Reporting by Andres Gonzalez; Writing by Martin Roberts, Editing by Leslie Gevirtz)

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