ProSieben shares drop on bond plans
Broadcaster will issue more than 100 mil new sharesBERLIN -- Shares in European broadcaster ProSiebenSat.1 took a nosedive Thursday after the company announced plans to issue convertible bonds valued at up to €1 billion ($1.4 million).
The move, which will see ProSieben issue more than 100 million new shares over the next five years, triggered a sell-off. ProSieben stock dropped 10% to just €4.08 ($5.8) Thursday, reversing two weeks of steady gains.
ProSieben and owners KKR and Permira want to use the share issue as a means of securing capital to weather the economic downturn.