Bloomberg News

MPC Capital to Post Wider-Than-Forecast EU96 Million 2008 Loss

March 20, 2009

MPC Capital AG, Germany’s largest closed-funds manager, will post a loss of 96 million euros ($130.1 million) for 2008, wider than it originally forecast.

The loss, which compares to a year-earlier profit of 38 million euros, is wider than the 70 million euro loss it forecast in November. That’s due to deteriorating financial markets and a writedown by the company for the value of its stake in HCI Capital AG (HXCI), MPC said in an e-mailed statement today.

“The international financial and economic crisis has further intensified in the fourth quarter 2008 and has led to a sharp drop in demand for financial products among the industry,” the company said in the statement.

MPC announced in November that it has to write down 80 million euros on its 41 percent stake in HCI. HCI, also based in Hamburg, earlier this month reported a full-year loss of 16.8 million euros, after a 30.6 million-euro profit in the previous year.

MPC will release detailed results on March 25.

To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net

To contact the editor responsible for this story: Kevin Reynolds at kreynolds@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus