Moynihan executed on his plan to cut costs and raise capital without issuing new shares.
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Because shareholders did not want their stock diluted, Generali could not finance purchases by issuing new shares.
But they promised not to do so by issuing new shares, which erodes the value of existing investors' shares.
Already, there is a growing acceptance among investors that banks need to recapitalise, either by selling assets, reducing dividends or issuing new shares.
The offering, priced at two times book value, is a better deal than most European or American banks could get for issuing new shares at home.
Banks will have to meet the new rules by either issuing new shares, cutting back on dividends, or cutting back on lending and making less risky investments.
Kvaerner is trying to raise at least one billion kroner and up to two billion kroner by issuing new shares in a push to sort out its short-term financial problems.
If they are to avoid the dilution that would be caused by issuing new shares, they must buy large quantities of existing shares in order to meet liabilities they have incurred through generous option schemes.
After Credit Suisse stopped issuing new shares, the number of the ETN's shares borrowed by short sellers nearly quadrupled overnight, from nearly 600, 000 on Feb. 21 to about 2.2 million a day later, according to Data Explorers.
But tenant bankruptcies could result in a decline in share price that could jeopardize the business model of issuing new shares as a way to raise money, one that falls apart with a meaningful decline in share price.
Disney is issuing approximately 40 million new shares as part of the deal.
The company said it planned to increase its capital by issuing about 14.6 million new shares.
In 2007, it stopped issuing stock options or shares to new employees, instead giving them restricted units that won't become stock until Facebook goes public.
If companies cannot repurchase stock, they can award shares to employees only by issuing new ones, which dilutes the stakes of existing shareholders.
The typical transfer of shares and the issuing of new ones means that blacks are expected to end up owning at least a quarter of the company by, say, 2010.
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