European shares fall as Santander announces capital increase

viernes 9 de enero de 2015 07:27 GYT

* FTSEurofirst 300 down 0.5 pct

* Santander slides after capital increase, dividend cut

* German exports, industrial output fall

* U.S. non-farm payrolls data due at 1330 GMT

By Lionel Laurent and Francesco Canepa

LONDON, Jan 9 (Reuters) - European shares snapped a two-day winning streak on Friday, with Spain's Banco Santander sliding over 10 percent after announcing a capital increase and dividend cut.

After announcing the share sale late on Thursday, the euro zone's biggest bank by market value sold 1.2 billion shares at 6.18 euros apiece. That was at the bottom of the indicated price range and a 10 percent discount to its last closing share price.

The selling pressure dragged Spain's benchmark IBEX index down 2.7 percent, underperforming the pan-European 300 index. The FTSEurofirst was down 0.5 percent at 1,360.99 points at 1100 GMT.

Santander said the sale would fund expansion, which prompted speculation it may look at acquisitions such as Italy's Monte dei Paschi. After a 12 rise on Thursday, shares in the Italian bank were down 5.4 percent.   Continuación...