October 17, 2011 / 2:26 PM / 6 years ago

STOCKS NEWS EUROPE-Dexia down on major shareholder's problems

Shares of Franco-Belgian financial group Dexia fall to near last week’s record low principally due to the problems of major shareholder Holding Communal, which has held Dexia shares for Belgium’s cities, towns and local authorities.

The shares fall by as much as 19.2 percent to a low of 0.5610 euros.

The Holding faces huges writedowns for its 14.14 percent stake in Dexia, which was rescued by Belgium and France and split apart a week ago.

“If the holding goes under, there are fears there will be a liquidation, and so a liquidation of Dexia shares,” one Brussels-based trader says.

Reuters Messaging rm://philip.blenkinsop.thomsonreuters@reuters.net

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