offered XL Capital an increased shareholding.

Financial Security Assurance Holdings Ltd. (FSA Holdings), the holding company for bond insurer Financial Security Assurance Inc. (FSA), has announced a plan to sell up to $140 million of its common shares.

FSA had previously announced its intention to raise additional capital to support growth in its core business.

FSA Holdings plans to sell common shares to its major shareholders -- XL Capital Ltd., White Mountains Insurance Group Ltd. and The Tokio Marine and Fire Insurance Co., Ltd. -- at a price of $54.20 per share, subject to certain conditions.

"We are pleased by this impressive demonstration of confidence and support by our major institutional shareholders,'' said Robert P. Cochran, FSA chairman and CEO.