Amagerbanken raises $153 mln to secure lifeline-UPDATE 1

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Friday September 10, 2010 01:13:15 AM GMT

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COPENHAGEN, Sept 9 (Reuters) - Small Danish bank Amagerbanken has raised 898 million Danish crowns ($153 million) in a fully subscribed rights issue of new shares, fulfilling a tough condition for a government lifeline.

In June, Denmark told struggling Amagerbanken to raise 750 million crowns ($130 million) by Sept. 15 to qualify for a guarantee for a $2.3 billion bond issue carried out in July.

Amagerbanken itself and analysts had said it would be difficult to raise the money in time.

Amagerbanken shares, which soared to a 10-month-high on Sept. 6 when its main owner Karsten Ree, who has a 33.3 percent stake, said he would take part in the rights issue, recovered some of its earlier losses on the day to trade 6 percent down at 6.45 crowns at 1451 GMT.

"It is expected that registration of the capital increase with the Danish Commerce and Companies Agency will be effected on 14 September 2010, and the first day of trading for the new shares is expected to be on 15 September," Amagerbanken said in a statement.

Last December, Amagerbanken raised 962 million crowns from its owners -- mainly from Ree -- and also agreed on a 1.1 billion hybrid capital loan under a state aid scheme that most of Denmark's more than 100 banks did not apply for.

Hit by ballooning loan losses, around 25 small Danish banks have disappeared during the financial crisis, taken over by the state or by stronger peers. The highest profile collapse was that of Roskilde Bank in 2008. ($1=5.860 Danish Crown) (Reporting by Anna Ringstrom; Editing by Will Waterman)

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