Germany: the Eurozone's fifth column | 67 comments (67 topical, 0 editorial, 0 hidden)

Re: Germany: the Eurozone's fifth column (none / 1)

Rights issues presume that the offering company is actually solvent.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 20th, 2010 at 04:24:11 PM EST
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Re: Germany: the Eurozone's fifth column (none / 1)

No they don't. The new capital might very well be used to plug the holes in the balance sheet of an insolvent company.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Sun Jun 20th, 2010 at 04:29:30 PM EST
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Re: Germany: the Eurozone's fifth column (none / 0)

And the new capital would love to do that for what precise reason, again?

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 20th, 2010 at 05:09:59 PM EST
[ Parent ]

Re: Germany: the Eurozone's fifth column (4.00 / 2)

Because the new capital, which might or might not be supplied by the old shareholders, will get shares at very preferntial terms, ie any old shareholder who doesn't take part in the rights issue will more or less be wiped out.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Sun Jun 20th, 2010 at 05:30:15 PM EST
[ Parent ]

Germany: the Eurozone's fifth column | 67 comments (67 topical, 0 editorial, 0 hidden)