MVL, just converted preferred shares to common.
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Reuters Business Report
Marvel Raises Offer for Preferred Shares
Monday October 7, 3:28 pm ET
NEW YORK (Reuters) - Marvel Enterprises Inc.(NYSE:MVL - News) said on Monday it has raised its offer to swap all of its convertible preferred stock for common shares, in a move to reduce preferred dividend payments and boost its earnings per share.
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Marvel, the leading comic book publisher and creator of Spider-Man, said each of its 8 percent convertible preferred shares would be exchanged for 1.39 common shares. Previously, the exchange ratio was set at 1.039 shares.
Marvel said that if not for its $8.1 million preferred dividends requirement, its earnings for the first six months of 2002 would have been 7 cents a share, instead of its reported loss of 9 cents a share.
The company said expects earnings per share will increase immediately following the exchange.
Marvel's common shares would increase to 65.2 million from 36.3 million, assuming all outstanding preferred shares were exchanged at June 30. The company also said 55 percent of its preferred shareholders had indicated to exchange their shares.
Shares slid 16.2 percent, or $1.20, to $6.20 on the New York Stock Exchange in late afternoon trading. Marvel's shares have gained in value by about a quarter in the past three months.
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