Popular shares soar on sale of mortgage assets
August 29, 2008
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NEW YORK—Shares of Popular Inc. jumped Friday after the Puerto Rico-based bank said it plans to sell $1.17 billion of U.S. mortgage assets to affiliates of Goldman Sachs Group Inc.
Shares gained 92 cents, or 13 percent, to $8.15. Shares have traded between $4.95 and $14.18 in the past 12 months.
Popular, which is selling both loans and servicing assets, will receive more than $700 million in proceeds from the sale and take a loss of about $450 million.
The sale is part of the bank's plan to reduce its exposure to deteriorating U.S. mortgage markets and focus on its core Puerto Rican businesses.
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