2008年12月21日星期日

Fortescue Plunges After Selling Shares to Pay Bills

Fortescue Metals Group Ltd., Australia’s third-biggest iron ore producer, fell by the most in more than two months in Sydney trading after selling shares to pay bills and raise cash.

The shares plunged 21 percent, the steepest decline since Oct. 15, to A$1.715. Fortescue sold 1.5 million shares at A$2.36 each “for goods or services provided,” according to a Dec. 19 exchange filing.

Fortescue said then it had $1.5 million frozen in accounts because of legal action related to shipping contracts. It is being sued by at least three shipping companies including Greek billionaire John Angelicoussis, who is seeking $130 million in damages.

“We issued shares to conserve our cash position given the importance of cash in the present market,” Fortescue spokesman Cameron Morse said today by phone from Perth. Fortescue had A$624 million ($425 million) in cash as of Sept. 30, according to its quarterly report. Morse couldn’t provide the latest cash position.

The stock has declined 87 percent from its year-high on June 24, based on closing prices.

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