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SHARES of Neptune Orient Lines (NOL) fell a further 7.5 per cent yesterday, adding to an 11 per cent drop in the previous session, on market concerns about a possible earnings-diluting rights issue by the world's seventh-largest container shipper.
Yesterday's closing price of 86.5 cents is its lowest since January 2003.
NOL shares fell 10.8 per cent on Tuesday following market talk that the company was considering a rights issue to raise more than US$250 million.
NOL said late on Tuesday it was evaluating options to improve its performance and strategic position but declined to comment on speculation about the rights issue.
One securities firm expressed doubt if NOL would float a rights issue.
'After a conversation with management, we do not think they will be raising funds via a rights issue soon for operational needs,' Deutsche Bank said in a report.
'They had anticipated this downturn for at least six months and have positioned themselves accordingly,' it added. -- Reuters
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