Premier Foods Owes A Lot Of Dough

March 2008 | Company Finance Alert

The UK's largest food producer Premier Foods, the maker of Hovis bread and Branston pickle, has slashed its final dividend and renegotiated its banking facilities as it struggles with rising wheat prices and a mountain of debt. However, after this announcement the firm's share price actually rose by 6% as investors were relieved that it will not break its banking agreements in the short term - a position which could have forced the quickfire sale of assets. Nevertheless, the firm's share price has plunged by two-thirds in the last 12 months - the second largest fall in the Dow Jones

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