He wants to distance himself from a project cooked up by his old political enemy, it seems, while also limiting the state's interest to energy and avoiding a dilution of its stake.
BNP Paribas agreed to invest another 27.6 billion won ($23.8 million) in Shinhan Financial, South Korea's second-largest financial group, to prevent the dilution of its stake after Shinhan issued new shares to acquire the Chohung Bank.
It said shareholders should be consulted when there was a possibility of substantial dilution of their stakes.
Other shareholders, miffed at the lack of pre-bid consultation and at the prospect of the dilution of their stakes, added their voices to Mr Hohn's, forcing Deutsche Börse to withdraw its bid.
The government's offer to spend up to 50 billion pounds ($87.6 billion) to take preference shares in eligible banks represented both a dilution of investors' stakes and an admission that the sector as a whole was still afflicted by a loss of confidence.
An Air France-KLM spokesman declined to comment on whether the group would accept a dilution of its Alitalia stake if it chooses not to participate in the capital increase.
The recent talks, which are understood to have broken down, would have seen a dilution of the 28% stake held by INM founder Anthony O'Reilly and the 26% owned by his bitter rival, Denis O'Brien.
Its second-biggest investor, the Tokyo Stock Exchange, has complained about the dilution of its 4.9% stake and the impact on its own prospects.The biggest obstacle, however, may be in Australia.
General Motors Chief Executive Rick Wagoner Rick Wagoner said that any dilution of GM's stake in Fiat's automboile unit during an on-going recapitalization wouldn't nullify the "put" option that could see it forced to buy out the company.
On Friday, GM's Chief Executive Rick Wagoner Rick Wagoner said that any dilution of GM's stake in Fiat's auto unit during an on-going recap wouldn't nullify the put option that could see it forced to buy out the company but also said he'd "take it at face value from Umberto's comments" that Agnelli intends the Italian industrial giant to " stay in the [auto] business longer term".
This is a useful ruse for families which want to avoid dilution of their controlling stakes when undertaking mergers.
