Ambac Equity Raising Only 60% of Earlier Target

'Today's announcement by Ambac, that it will raise $1.5 billion in equity and equity units, came as a shocker. It had been leaked more than a week ago that the bond insurer planned to raise a total of $3 billion, $2.5 billion of it in equity backstopped by the eight banks previously involved in bailout talks, and $500 million in debt. Now the deal is only $1.5 billion in equity, no mention of debt, and apparently no bank backstop either.'