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SocGen slashes share price by almost 40%

Societe Generale has launched a steeply discounted £4.1bn share sale in a bid to cover the £3.7bn loss made by rogue trader Jerome Kerviel.

The bank is offering a one-for-four rights issue at £35.50 a share, a discount of almost 40 per cent on Friday’s closing price.

The rights issue is being underwritten by JP Morgan and Morgan Stanley.

The bank’s share price fell four per cent to £55.60 after news of the sale became public.

The move follows SocGen’s admission that losses from the credit crisis would be nearly £2bn, an increase of £450m from earlier predictions.

The share sale ends on February 29.

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