Carlsberg Announces US$6.3bn Rights Issue

Denmark-based brewer Carlsberg has announced a US$6.3bn rights issue to help finance its side of the takeover of UK brewer Scottish & Newcastle (S&N). The need for extra capital was first announced in October 2007, and at the time the firm's directors suggested that investors would be happy to stump up the extra cash if it meant they could gain full control of the high growth Eastern European business, which Carlsberg then owned jointly with S&N. However, following the announcement the firm's share price plummeted by over 25% (see graph). Although the share price has subsequently regained some of this

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