Dai-Ichi Kangyo Ltd. said Friday that it would raise $1.3 billion by selling 49 million shares of CIT Group Inc. to the public.

The sale - 30% of the finance company's outstanding common stock - would reduce the Japanese company's stake by 47%.

The price announced, $27, was 50 cents below the market price, which slipped to that level by 1 p.m. Friday.

The proceeds from the sale will solely benefit Dai-Ichi, CIT said.

Dai-Ichi has agreed to grant the underwriters the right to purchase an additional 7.35 million shares to cover overallotments.

J.P. Morgan & Co. and Salomon Smith Barney are the bookrunning lead managers on the transaction. Credit Suisse First Boston, Lehman Brothers, Morgan Stanley Dean Witter, and Warburg Dillon Read LLC are co-managers.

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