The FT said under a recent proposal Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance business with potentially lower ratings.
NEW YORK (Reuters) - Ambac Financial Group Inc <ABK.N>, the second biggest U.S. bond insurer, has decided against splitting in two as part of a $2 billion to $3 billion recapitalization, the Financial Times reported on Tuesday, citing insiders.
The FT said under a recent proposal Ambac would have split its operations into a triple-A-rated municipal bond insurance business and a structured finance business with potentially lower ratings.
Eight banks led by Citigroup <C.N> and UBS <UBSN.VX>, are preparing to inject around $2 billion or more into Ambac.
Ambac was not immediately available for comment.
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