biz.yahoo.com
Corning stock off after convertible debt offering
CORNING, N.Y., Nov 8 (Reuters) - Shares of Corning Inc. (NYSE:GLW - news), the world's largest maker of fiber-optic cable, fell as much as 7.4 percent on Thursday after the company started a convertible debt offering, analysts said.
ADVERTISEMENT
Corning's stock fell as low as $7.10 and was still off 57 cents, or 6.5 percent, at $8.18 in early afternoon trading on the New York Stock Exchange. Since the beginning of the year, it has underperformed its peers on the Standard & Poor's Communications Equipment Index (^SPCOMM - news) by about 60 percent.
The Corning, New York-based company said it has started a public offering of $600 million of senior unsecured convertible debentures to be used for general corporate purposes.
Convertible debt can be converted into company stock. Shares often fall after a company announces a convertible sale because some investors sell the underlying stock short.
Corning said the offer is part of its existing $5 billion universal shelf registration statement. The debentures are expected to have a 7-year maturity, due in November 2008 and redeemable at Corning's option after November 2004. Pricing will be set after the market closes on Thursday.
The proceeds from the offering will be used for general corporate purposes, including working capital requirements, normal, ongoing capital spending and the possible funding of future acquisitions, Corning said. |
