UPDATE 1-Ameriprise plans to offer $900 mln in stock

martedì 9 giugno 2009 22:59
 

* To use proceeds for acquisitions, growth initiatives

* Shares fall 5.4 pct in extended trade

June 9 (Reuters) - Ameriprise Financial Inc (AMP.N: Quotazione), which turned down TARP funds last month, said it will publicly offer $900 million of its common stock and use the proceeds for growth initiatives and acquisitions.

Shares of Ameriprise, spun off from American Express (AXP.N: Quotazione) in 2005, dropped 5.4 percent to $26.80 in trading after the bell. They closed at $28.39 Tuesday on the New York Stock Exchange.

The asset manager and broker specializing in retirement plans said it intends to grant the underwriters an option to purchase up to an additional 15 percent of the shares offered to cover over-allotments.

J.P. Morgan Securities Inc and Merrill Lynch & Co are the joint book-running managers for the offering, the company said in a statement. (Reporting by Archana Shankar in Bangalore; Editing by Deepak Kannan)