Shareholders Respond to Imperial Tobacco and Carlsberg Cash Calls

Source from:  telegraph.co.uk By Jonathan Sibun 13/06/2008 06/12/2008

UK tobacco manufacturer Imperial Tobacco and Danish brewer Carlsberg have raised a combined £8.1bn from investors in a sign that top tier companies can still rely on shareholders' financial support despite difficulties in the global economy. Imperial said yesterday that all but 2.8pc of its shareholders had subscribed to its £4.9bn rights issue, while Carlberg's Dkr30.5bn (£3.2bn) cash call was fully subscribed. Carlsberg and Imperial each launched the rights issues to refinance loans taken out to fund acquisitions. Imperial's 1-for-2 cash call, launched to finance its acquisition of Spanish rival Altadis, was fully underwritten by Hoare Govett, Morgan Stanley, Citigroup and Lehman Brothers. The banks were left with stock worth just £137m which they will sell on in the open market. # More on retail The world's fourth biggest cigarette maker has seen its share price fall from £26.18 to £20.35 since announcing the rights issue, in which investors were offered shares at £14.75. advertisement The cash call was Britain's third biggest rights issue after Royal Bank of Scotland's £12bn call, completed last week, and BT's £5.9bn issue in 2001. Carlsberg's rights issue, Denmark's biggest, was underwritten by BNP Paribas, Danske Bank, Lehman Brothers and Nordea Bank. The cash call was launched to pay for the company's acquisition of UK rival Scottish & Newcastle. The Carlsberg Foundation sold its rights rather than buying new shares, cutting its stake in the brewer to about 30pc from over 50pc. The foundation still has control of the brewer through its ownership of Carlsberg's key voting shares. Enditem