Société Générale gets a cash infusion

Société Générale (SG) is the latest of several banks to raise money through the capital markets after suffering multibillion-dollar losses. Unlike several Wall Street banks issuing mandatory convertibles, the French bank will sell stock and give current shareholders a preferential subscription right or the first right of refusal.

Current shareholders can buy SG stock at €47.5 a share, an amount much below the market price, and will receive one share for every four existing shares. However, they will not be allowed to sell the stock for 180 days. The bank expects to raise €5.5 billion by the time the subscription period ends on February 29.

"This is a quick way to raise money. It forces shareholders to buy stock unless they want to be left with a diluted share. It will be interesting to see if all the stockholders