He thinks the company is likely to require a highly dilutive equity raise to deal with the debt issue.
Given that gap, a dilutive equity raise is the last thing the company should be considering, the hedge funds say.
FORBES: Hedge Funds Up Offer For CommonWealth REIT, With A Catch
While the dividend cut was expected, the management changes and the possibility of a dilutive equity raise (under book value) was not expected by The Street.
Exelixis' shares had plunged 58% in 2008 until the announcement and, according to Chief Executive George Scangos, the company had largely given up on selling equity to raise cash.
The effect on Slovak industry is serious, because companies can no longer raise equity finance.
They are able to raise equity pretty easily based on their previous track record.
FORBES: Obama's Phony War on Hedge Funds - Attack on Real Estate
Higher share prices make it cheap for firms to raise equity finance and so they invest more.
Rising share prices also made it cheaper for firms to raise equity finance, so fuelling a surge in investment.
As far as trying to do an initial public offering (IPO) of common stock to raise equity capital, forget it.
Instead, most of the repatriated dollars went to shareholders in the form of dividends or stock buybacks (which raise equity prices).
There are three main options: renegotiate debt, raise equity or go bankrupt.
Less investment will mean that it costs a company more to raise equity to make an investment in a new product or process.
In a similar vein he also attacks capital regimes and deposit-insurance schemes that require banks to raise equity and pay premiums when losses are high.
They know that if they are going to spend money and raise equity, or go to the fixed-income markets to finance it, it better be accretive.
Because it is still not clear how building societies that - by definition - can't raise equity capital from investors are going to finance the takeover.
But because a judge has ruled that wife Jamie owns half of the team he cannot raise equity by selling a minority stake without her consent.
FORBES: Los Angeles Dodgers Likely Headed To Auction Due To Lack Of Cash For Payroll
They will raise equity and borrow money to accomplish this.
FORBES: Obama's Phony War on Hedge Funds - Attack on Real Estate
"They said they wouldn't raise equity, but they did, " he said, adding that both former CEO Josef Ackermann and Mr. Jain had expressed concerns about diluting shareholders in the past.
Regulators have got strong grounds to intervene on pay only if banks cannot make enough money, or attract enough new equity, to raise their capital ratios to the required level.
But Selig and the other owners want this deal done quickly and they want the highest price possible, especially with the financially-troubled New York Mets struggling to raise equity.
FORBES: Mark Cuban And Magic Johnson Could Use TV Rights To Finance Purchase Of Dodgers
Their new crowdfunding platform is designed specifically to take advantage of the JOBS Act to allow social entrepreneurs focusing on a double bottom line (profit and social good) to raise equity.
There is another benefit for companies that buy back shares: they are likely to be able to raise equity finance later more cheaply, say Matthew Billett and Hui Xue from the University of Iowa.
One has to anticipate a continuing negative clean tech funding environment (and a future up cycle is likely too) and keep in mind that this will limit the ability for these companies to raise equity financing in the future.
FORBES: The Big Green Opportunity: Transforming Clean Tech Into "Main Tech"
We are much more ready to abandon or sell a technology in clean tech today if it fails to be highly differentiated because one has to anticipate a continuing negative clean tech funding environment that will limit the ability to raise equity financing for these companies in the future.
FORBES: The Big Green Opportunity: Transforming Clean Tech Into "Main Tech"
While we had the option to try to raise debt or equity capital, we knew debt capital was incredibly difficult to raise in the current economic environment.
FORBES: Small Business Loans: A Great Option...Unless You Actually Need Money
I.e. when you do raise an equity round, the valuation may be below the cap.
FORBES: Paul Graham: What Startups Can Do If (When?) Facebook IPO Affects Valuations
Since its capital ratios are too low to support fast growth, SBI needs to raise more equity.
ECONOMIST: China��s banking system is not a good model for India
By doing so balance sheets would improve and the community banks could raise private equity capital and return to the business of banking.
In the short term, companies would be grateful for any equity capital they could raise from retail investors, so they could bolster their balance-sheets.
应用推荐