Ams-OSRAM AMS, -20.79% lost more than a quarter of its market value on Thursday after the heavily-indebted electronics groups set out plans to raise more than €2 billion as it strives to bolster its balance sheet.
News of Ams-OSRAM’s plans did not go down well with investors, with its Swiss-traded shares plunging more than 28% at one point. “The magnitude of the rights issue is a negative surprise as €800m is equivalent to c.50% of the current market cap. We had expected a smaller equity portion,” wrote Juergen Wagner, analyst at Stifel, in a note to clients.
“H&M delivered another small earnings beat in 3Q [published Wednesday] but the mix between sales, gross margin and cost management is less compelling than we would have liked. This creates a big debate in our mind,” said Deutsche.