Ambac Charlie Strikes Again
Originally Published In the News March 5, 2008 2:15 PM
How much longer will Charlie Gasparino hold this market hostage with his Ambac updates? Charlie is relishing the role, but might need to find a new schtick soon.
Ambac Financial Group Inc., the bond insurer facing a crippling credit-rating downgrade, plans to sell $1.5 billion of common stock and equity units to bolster its capital.
Ambac dropped as much as 20 percent in New York Stock Exchange composite trading on concern the offering may not be enough to keep the company’s AAA rating. Investors anticipated the company would raise as much as $3 billion, said Robert Haines, an analyst at CreditSights Inc.
``It’s too little, too late,’’ said Kevin Giddis, head of fixed-income trading in Memphis, Tennessee, at Morgan Keegan Inc., a brokerage and investment-banking firm. ``I think the market expected more substance.’’ Bloomberg
Too little, too late indeed.
Ambac Seeks $1.5 Billion in Stock, Equity Unit Sales
Bloomberg
Comments:
Next entry: Reality Bites Ambac Longs
Previous entry: Stripper Tax Debated at Merriman
