Nat City, Corsair Amend Deal

Corsair Capital and National City(NCC Quote - Cramer on NCC - Stock Picks) have amended the agreement governing the private-equity firm's portion of a $7 billion investment it led into the troubled Ohio bank.

According to a Securities Exchange Commission filing Monday, the amendment allows New York-based Corsair to transfer its shares after an 18-month holding period. The amendment also strips Corsair of its right to nominate a member to National City's board if its ownership of National City shares drops below 30 million, among other changes.

National City's stock price has dropped more than 40% since New York-based Corsair led a $7 billion equity investment into the bank on April 21. Corsair invested $985 million in Nat City, $200 million of which came from MSD Capital, the investment vehicle of Dell(DELL Quote - Cramer on DELL - Stock Picks) founder, Chairman and CEO Michael Dell and his family. The rest of the $7 billion came from a large group of institutional investors.

The investment valued Nat City at $5 per share -- a significant discount to the $8.32 a share the stock closed at on April 18, the Friday before the deal was announced.

Nat City shares closed down 2 cents to $4.77 Monday.