Bank Bali mystery unsolved, while stock surges

Bank Bali gets a recapitalization plan, leaving regulators until October to smoke out those controlling the stock.

Indonesias controversial PT Bank Bali rose 67% today Tuesday its second day of trading since its two-week suspension ended. Investors snapped up the stocks after the bank announced further details about its Rp5.36 trillion $600 million recapitalization plan.

Bank Bali said it would issue 66.53 million new shares in a 99-for-1 rights issue, priced at about Rp80 a share. Last month, Indonesias parliament finally approved the bank's recapitalization plan after Rudy Ramli, whose family once controlled the bank, promised to drop a lawsuit contesting the governments nationalization of the lender.

Trading in Bank Bali shares was suspended on Monday when the stock rose 50%, amid frenzied bidding. When trading resumed today,...

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