Thomson Multimedia ADRs climb in US debut
Reuters, Wednesday, November 03, 1999 at 13:36
NEW YORK, Nov 3 (Reuters) - Consumer electronics group
Thomson Multimedia's (SBF:TMM) (NYSE:TMS) American Depositary
Receipts posted a strong gain Wednesday as U.S. investors bid
up the shares in its first day of trade following a heavily
oversubsribed offering.
The French company, which is the fourth largest television
and VCR supplier in the world, offered 21.1 million shares at
$22.59, or 21.5 euros, raising $476.61 million.
Thomson's ADRs were last at $30.50, up $7.91, or about 35
percent, making it the top percentage gainer on the New York
Stock Exchange.
"It's a hot one. There is interest here in the States
because many (U.S.) investors were shut out of the deal and so
now we are stuck buying it at these prices," said one head of
an emerging markets desk. "It's also the type of company that
is seeing interest these days."
Thomson Multimedia is the largest supplier of televisions
and VCRs to the United States and it has plans for Internet
ventures and a telephony joint venture with Alcatel (SBF:CGEP).
Traders said the stock was cheap given what Thomson does.
The deal priced at the top end of the reference range set by
the French Finance Ministry. Goldman Sachs was a manager on the
offering.
Alcatel, Microsoft Corp. (NASDAQ:MSFT) and NEC Corp. (TOKYO:6701)
(NASDAQ:NIPNY) each hold a 6.8 percent stake in the company.
Copyright 1999, Reuters News Service
|
