Enviado: 18/6/2003 18:58Reuters
UPDATE - CNET decides against private notes placement
Wednesday June 18, 10:01 am ET
(Updates with analyst comment, stock price)
NEW YORK, June 18 (Reuters) - CNET Networks Inc. (NasdaqNM:CNET - News), a technology news provider, said on Wednesday it would not proceed with a planned private placement of $100 million in convertible notes, because terms were not attractive enough.
Investors cheered the news, sending the stock up 10 percent, or 51 cents, to $5.55 in early trading on Nasdaq.
CNET said in a statement that it decided the available terms were not attractive enough and its current capital and cash flow would meet its growth objectives.
The San Francisco-based company had announced the placement on Tuesday and said it planned to use the proceeds for general corporate purposes, including acquisitions and working capital.
"It's positive if the company feels it can generate enough cash from operations and existing cash to sustain current operations," said Drake Johnstone, analyst at Davenport & Co., who has a "neutral" rating on the stock. "The fact they don't feel they have to and can be selective how they raise capital underscores the company's feeling about future results."
As "convertible notes" íam mecanicamente diminuir o valor de cada acção. É tipo empréstimo obrigacionista convertivél em acções.
um abraço
UPDATE - CNET decides against private notes placement
Wednesday June 18, 10:01 am ET
(Updates with analyst comment, stock price)
NEW YORK, June 18 (Reuters) - CNET Networks Inc. (NasdaqNM:CNET - News), a technology news provider, said on Wednesday it would not proceed with a planned private placement of $100 million in convertible notes, because terms were not attractive enough.
Investors cheered the news, sending the stock up 10 percent, or 51 cents, to $5.55 in early trading on Nasdaq.
CNET said in a statement that it decided the available terms were not attractive enough and its current capital and cash flow would meet its growth objectives.
The San Francisco-based company had announced the placement on Tuesday and said it planned to use the proceeds for general corporate purposes, including acquisitions and working capital.
"It's positive if the company feels it can generate enough cash from operations and existing cash to sustain current operations," said Drake Johnstone, analyst at Davenport & Co., who has a "neutral" rating on the stock. "The fact they don't feel they have to and can be selective how they raise capital underscores the company's feeling about future results."
As "convertible notes" íam mecanicamente diminuir o valor de cada acção. É tipo empréstimo obrigacionista convertivél em acções.
um abraço