State close to becoming majority owner of Vestjysk Bank

It seems that Vestjysk Bank (CPH: VJBA) is leaning towards state as the rescuer as a part of its assessment of the means to improve its capital structure. This would be done via use of the conversion option linked to bank’s acceptance of a hybrid loan from the state, turning it into equity. The bank has been very critical of the media's handling of the situation and singled out one publication as the main culprit in undermining confidence in the bank's operations.

As was mentioned earlier, the state option was gaining traction among various stakeholders and employees trade organization was openly supporting such a move. It would conceivably make the state the largest shareholder. Vestjysk Bank said it has not issued a request for conversion and would immediately notify the market if it chose to do so. The stock is down 12.5% 2.5 hours into the trading session.