Tuesday, October 28, 2008
Several banks have gone hat in hand to sovereign wealth funds
in Abu Dhabi, China and Singapore, seeking to raise capital to offset their recent massive losses. These deals, mostly convertible bonds or convertible preferred stock, have the potential to massively dilute existing shareholders’ stakes when they do convert. Should I sell my positions in the banks that have issued them, or is the earnings-per-share dilution already factored into their current stock prices?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment