Investors Sell XL Capital (XL) Capital "Sale" News

After initially popping higher on headlines from Bloomberg that the company is looking for a buyer, XL Capital Ltd. (NYSE: XL) is now heavily in the red - down 41%.

Bloomberg cited four people with knowledge of the matter and said the company has hired Goldman Sachs to gauge interest from potential bidders. The stock has been under extreme pressure from the credit crunch and debt downgrades.

Investors seem to view the sale news as an act of desperation, which any potential buyer will certainly hone in on when considering a price for the beleaguered re-insurer.

XL Capital Ltd., through its subsidiaries, provides insurance and reinsurance coverages to industrial, commercial, and professional service firms, as well as insurance companies and other enterprises worldwide.

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