March 14, 2012 / 9:19 PM / 7 years ago

Capital One to sell $1.25 billion in stock

(Reuters) - Capital One Financial Corp (COF.N) said it would sell $1.25 billion of its common stock to pay for a portion of its acquisition of HSBC’s (HSBA.L) U.S. credit card business.

Last August, the credit card company turned U.S. bank agreed to buy HSBC’s domestic card business, including its $30 billion credit card portfolio, and had said it would raise capital to pay for the deal.

Separately, Capital One said in the first quarter it expects earnings per share from continuing operations of at least $2.50.

The company earned $2.21 a share in the year-ago quarter.

Capital One also said it expects its Tier 1 common ratio — a measure of bank stability — to be well above 11 percent at the end of the first quarter.

Reporting by Jochelle Mendonca in Bangalore; Editing by Supriya Kurane

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