No. of Recommendations: 3
Hi all,

Not good news if you own shares:

NEW YORK, May 17 (Reuters) - Doral Financial Corp. (DRL.N: Quote, Profile, Research, a long-struggling Puerto Rico lender, said on Thursday that it had agreed to a takeover by a group of private equity and other firms led by Bear Stearns Merchant Management.

The San Juan-based company will sell the group $610 million of stock at 63 cents per share, 49 percent below its $1.24 closing price on the New York Stock Exchange on Wednesday. After the transaction, the group will own 90 percent of Doral's stock, while existing shareholders will hold 10 percent.

"Although highly dilutive to existing common shareholders, the board believes it is the best, and probably the only, means to retain some value for existing shareholders," Doral Chairman Dennis Buchert said in a statement.

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