Ambac seeks to stay on NYSE by lifting share price

AP News
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Posted: Dec 10, 2009 4:27 PM

Bond insurer Ambac Financial Group Inc. said Thursday it plans to raise its stock price above $1 within six months to avoid being delisted by the New York Stock Exchange.

Ambac said in a regulatory filing that it is in the process of evaluating the potential options for raising its stock price to meet the NYSE criteria for maintaining a listing.

On Wednesday, Amabac said it was notified by the exchange that it had fallen below listing standards, which require companies to maintain an average closing price of $1 per share for a period of 30 consecutive trading days.

As of Dec. 8, the date of the NYSE notice to Ambac, the company's average for the preceding 30 trading days was 94 cents per share.

Ambac shares fell 3 cents, or 3.7 percent, to close at 79 cents Thursday. They've traded between 35 cents and $2.09 in the past 52 weeks.

Under the stock exchange's rules, Ambac has six months to bring its share price and 30 trading-day average price back above $1 to stay listed.

Ambac's common stock will continue to be traded as long as the company remains in compliance with other listing requirements.

Ambac's stock traded over $95 a share just two years ago. The company was battered by turmoil in the bond market last year.