Date:01/12/2006 URL: http://www.thehindubusinessline.com/2006/12/01/stories/2006120105330600.htm

City Union Bank board okays pref allotment

Our Bureau

Coimbatore , Nov. 30

The Board of City Union Bank Ltd met on Thursday morning, to consider L&T's stake in the bank.

In a release issued here on Thursday, the City Union Bank Chairman, Mr Balasubramanian, said this would be an important milestone in the bank's 102-year history, as it would not only strengthen the relationship but enhance the bank's growth opportunities as well.

The board has recommended its shareholders to consider preferential allotment up to 26,65,000 equity shares (9.99 per cent post issue) to L&T Ltd at Rs 169 per share, including a premium of Rs 159. This recommendation, however, is subject to the shareholder's and Reserve Bank of India's approval.