Sarkozy to discuss bank capitalization with Merkel

French President Nicholas Sarkozy on Friday said he would discuss the issue of possible capital injections for banks during his meeting with German Chancellor Angela Merkel this Sunday in Berlin. "I will have the pleasure of being in Berlin on Sunday. That will be the place to talk about recapitalizing banks," Sarkozy told a news conference in Yerevan, Armenia, on Friday during his visit to the Caucasus. Banks have gained further and featured among the top risers after European Commission President Jose Manuel Barroso said the European Union''s executive was proposing member states should take coordinated action to recapitalise banks. While the aim of a recapitalization is normally to improve a company''s debt/equity ratio, it can also be used to fend off a hostile takeover - in which case the company makes itself unattractive by increasing the level of debt in its capital and using the funds to pay special dividends to shareholders.