Continental to issue 31 million new shares
Continental AG plans to issue 31 million new shares in a bid to raise more than one billion euros in new capital. Subscription price will be 35 euros per share.
Continental will use the proceeds to "repay the 3.5 billion euro credit tranche B of a syndicated credit facility that comes due in August 2010," say company officials. (Continental used the facility to finance its acquisition of Siemens VDO.)
A securities prospectus for the offer is expected to be published on Jan. 11, subject to approval by the German Financial Supervisory Authority.