Europe's largest insurer Allianz is set to announce plans for a €7bn (£5bn) cash call to plug holes in its Dresdner banking business.
The move, to be confirmed later this morning, will accompany 2002 results which are expected to show Allianz falling into the red for the first time in its history. Losses are expected to top the €1bn (£676.7m) mark.
It has been reported that the new shares will be offered at a discount in an effort to win support from investors.
There had been some speculation, according to Reuters, that Allianz is seeking cash from shareholders to underpin its 'AA' credit rating, but the size of the rights issue is likely to catch the market by surprise.
