RWE to raise 2.1 bn euros from capital increase

6th December 2011, Comments 0 comments

RWE, Germany's second-biggest power supplier, said Tuesday it would raise a total 2.1 billion euros ($2.8 billion) from its planned share offering after it set a price of 26 euros per share.

The day before, RWE had said it was offering 52.34 million new shares and sell a further 28.1 million shares from its own holdings to "strengthen its capital base and thus create leeway for future growth."

The news of the offering sent RWE shares into a nosedive on the Frankfurt stock exchange, where they shed as much as 12 percent owing to its dilutive effects.

© 2011 AFP

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