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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (1974)	11/10/2008 8:12:56 AM
From: Paul Kern	Respond to of 34328

Nov 10 (Reuters) - Buyout firm American Capital Strategies Ltd (ACAS.O: Quote, Profile, Research, Stock Buzz), which currently owns 67.7 percent of European Capital Ltd (ECAS.L: Quote, Profile, Research, Stock Buzz), said it plans to acquire the remaining shares in the company for $158 million in stock. American Capital, which on Monday also posted a third-quarter operating profit above Wall Street estimates, and suspended its dividend for the rest of 2008, said European Capital shareholders will receive 0.333 American Capital shares for each ordinary share held. Shares of European Capital were trading up almost 40 percent at 2.42 pence Monday on the London Stock Exchange. The deal, which will raise American Capital's tangible net worth by about $260 million, is likely to close in the first quarter of 2009. American Capital expects the acquisition to be "somewhat dilutive" to operating earnings in 2009 and "somewhat accretive" in 2010. The company suspended its dividend for the remainder of 2008 in an attempt to boost capital, and said it will retain its 2008 net long-term capital gains. The company had been paying out a quarterly dividend of $1.05 a share. For the third quarter, American Capital posted a net loss of $2.63 per share, hurt by $698 million of net unrealized depreciation, compared with earnings of 11 cents a share a year earlier. Net operating income for the quarter remained flat at $153 million, or 74 cents a share, while analysts on average expected 69 cents a share, excluding items. Shares of American Capital were down 17 cents at $13.60 before the bell. They closed at $13.77 Friday on Nasdaq.