Europe - 3i confirms £732m rights issue

3i said that it would issue 542 million new shares at a price of 135 pence per share, a 39.8% discount to the theoretical ex-rights price and a 60% discount from Thursday's closing price of 339 pence.

The move is expected to strengthen the company's investment grade credit rating as well as improve 3i's access to debt capital markets.

The group reported net debts of £1.1bn at the end of March and a net asset value per share of 496 pence, down from 1,077 pence one year ago. 3i also revealed a loss of £2.15bn against a profit of £792m last year.

Queen said that this issue would be the start of a more conservative approach to its financial strategy, adding that the rights issue would increase liquidity to £1.8bn -up from £1bn.

He was cited as saying that 3i's situation is 'no Candover situation', and that the 'offers given on its assets were ridiculous'.

Shares in 3i jumped to 373 pence early this morning.

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