Capital Markets: Issuer Strategy - Thomson Heads Down Hybrid Route - When The Share Price Of French Media Technology Group Thomson Dropped, It Decided A Hybrid Structure Was Its Best Funding Option. Its Chief Treasurer Tells Edward Russell-Walling Why.

Banker, The, December, 2005 by Russell, Edward

The new market in hybrid capital for corporates continues to win converts. One of the latest is Thomson, the French media technology group. Because its share price has been weak, the company was particularly attracted by an equity-like structure that did not require the actual issue of shares. But the issue caused a stir.

Thomson, which was once part of the larger state-owned Thomson electronics group, is implementing a two-year growth plan while repositioning itself as a pure media and entertainment systems business. It recently sold its loss- making TV tubes division, having earlier exited from consumer electronics. Sales growth has been slowing, however, and the company recently warned it would miss this year's sales and margin targets.

...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.