Alstom unveils terms of capital increase

20th November 2003, Comments 0 comments

PARIS, Nov 20 (AFP) - Struggling French engineering giant Alstom unveiled Thursday the terms of a capital increase and bond issue aimed at shoring up its finances and which shareholders approved earlier this week.

PARIS, Nov 20 (AFP) - Struggling French engineering giant Alstom unveiled Thursday the terms of a capital increase and bond issue aimed at shoring up its finances and which shareholders approved earlier this week.

Alstom, which has wide-ranging interests from building energy turbines to the French high-speed TGV trains and ships such as the new Queen Mary 2 liner, said it was launching a
EUR 300 million (USD 357 million) capital increase together with a convertible bond valued at around EUR 900 million.

The company said that for the capital hike, shareholders would receive one free warrant per share held entitling them to buy 23 new shares for 27 warrants, with the new shares priced at EUR 1.25 each.

The offer period runs from November 27 to January 9.

In the bond issue, shareholders are entitled to one preferential right per share held, with seven rights allowing subscription to 16 bonds at 1.40 euros each.

The bonds will pay interest of two percent per year and mature in December 2008. The subscription period runs from November 27 to December 10.

The issue is guaranteed by a bank syndicate including BNP Paribas, Credit Agricole Indosuez, Credit Lyonnais and Societ Generale.

Last week the company, for which the French state has orchestrated a controversial rescue plan, reported a net loss for the period from April to the end of September of EUR 624 million compared with a profit of EUR 11 million in the same period in 2002.

© AFP

Subject: French news


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