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Breakingviews: Peugeot discount share sale no failure

Tuesday, March 06, 2012 - 03:28

Mar. 6 - Peugeot's discount on its $1.3 bln share sale could put it back in the driving seat and offer encouragement to other companies says Reuters Breakingviews' Peter Thal Larsen.

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Today's topics from the breaking news team for shows one point three billion dollar cash -- inspires confidence. And Spain replaces Italy as the Euro is bad boy with me is assistant editor Peter told also commented about points is second pizza I've. The -- this there's some 32% discount seems quite steep. You feel I'm how how come -- watched. Question into -- -- -- and parishioners kind of a car makers of a bad -- of the of their grant options that its actually. 32% looks like quite an offer rights issue and to tell you sort of tough factor in the fact that. This is a comic -- which is troubled industry. Secondly they're raising. A third of their market capitalization. And that raising this to fund capital spending. In what is an industry would already would have capacity as part of a -- tie up with GM the little people to life. So if we take always factors into account. To say finish him discounts to to the theoretical ex rights price it seems actually not that bad that they on the -- -- demanded. And even though this deal was leaked advancement -- consider anticipated. To 6% share price for on the day -- -- it looks. Probably as good as provision could -- for -- sentenced and that's what what 6% to what was it is well let's what is what is now that's I haven't yet Qatar and I don't think the thing is you know it it's probably suggests that for a particular you'd be equity markets and the ability for companies to raise equity. The company if you come -- Purdue and all these difficulties. Is able to raise money on these terms and actually -- quite well for companies that are stronger position. Then it's okay it's going to be -- Europe's employee. It was easily. If we're gonna measure that bat boys just scraps of -- it costs it's now spread. This is the first time there but it look of course for a long time it was spent that was yeah it was just came it was -- upon them. And then people started to worry really about Silvio Berlusconi's ability to do anything -- and -- so yes I should just have to if laden passports or Saturday when -- effect. Anyway he's now been replaced by -- good boy and Mario -- I'm opposites have rewarded that. And restored it to me to it's it's it is it's it's it's it's it -- if he spreads and how insights thanks again after the first time since. Most of August and we actually think that diversions to differently rooted partly because even if both countries -- new prime ministers and it both embraced reform. Paramount's appropriate has more credibility than with the markets and then Mariano -- I was at the moment and also. Basically just has a fundamentally good position has a lower deficit hasn't it been even though it has. Hi dad who has a better current account yet. Position I hate to say we got good ones rather until Italy's election but that's the issue right to be among a little -- result Monty and and he seems unelected Paris. He's an in place there for another year and so at some point tomorrow as we need to focus on who comes off to Monte. Will that replacement be able to applicant will have a -- a consensus and wouldn't be able to carry on delivering the reforms among teens has put in trying. And so at that point again you can maybe see the sort of about voice takes its flip around again and half the speed of many thanks -- beautiful awesome. For more -- -- it's our ports -- US breaking news show every day 1230 some 171000 GMC. -- -- -- -- -- --

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Breakingviews: Peugeot discount share sale no failure

Tuesday, March 06, 2012 - 03:28