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Imperial Tobacco in shock ?4.9bn rights issue
Imperial Tobacco
stunned investors today as it launched a ?4.9 billion rights issue to help pay
for last year's bumper acquisition of Altadis, the Spanish cigarettesmaker.
The deal is one of the
largest in UK
corporate history and comes as a growing list of British companies take the
begging bowl to existing shareholders for much-needed cash.
Proceeds will help pay
off some of the debt associated with the acquisition, which completed in
January.
At the same time, the
world's fourth largest cigarettes group reported a 45
per cent slide in first half profits, down from ?421 million to ?233 million
for the six months to the end of March as it faced up to difficulties
integrating the acquisition.
Shares slid 62p to
?25.56, a fall of almost 2.4 per cent, in early trading.
The issue is fully
underwritten by Morgan Stanley, Lehman Brothers, Citigroup and Hoare Govett.
Royal Bank of Scotland, the banking group, is asking investors
for up to ?12 billion, while HBOS, which owns Halifax, has launched a cash call for ?4
billion.
Johnston Press, the
regional newspaper group, last week said it would try to raise ?212 million by
offering new shares to existing owners.
Imperial, which makes
Lambert & Butler and Gauloises brands, is offering one share for every
existing share at ?14.75 each.
This is a deep
discount of 43 per cent to last night's closing price of ?26.18 but is similar
to the basement prices on offer elsewhere.
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