Posted on 07 Apr 2008
According to a source familiar with the matter, U.S. private equity firm TPG and other investors are closer to striking a deal to invest around $5 billion in U.S. thrift Washington Mutual. The announcement could come as early as today.
According to the report, the investment looks like it could be both a common- and preferred-stock offering, adding that the preferred stock could be later converted to common shares, subject to a shareholder vote.
Washington Mutual, the largest U.S. savings and loan, has suffered heavy losses from the national mortgage crisis. In January, the lender said it expected to set aside as much as $2 billion for credit losses in the current quarter.