Imperial follows Carlsberg with £4.9bn rights issue

Imperial Tobacco’s board yesterday (Tuesday) made public plans to raise £4.9bn through a rights issue in order to repay debt taken on for the acquisition of is Franco-Spanish rival Altadis. In the deal, Eu338.7m shares, one third of the enlarged share capital, will be offered for 1,475p each. Shares are on offer on a one for two basis and come at a 40% discount to market value. Imperial Tobacco’s shares lost 12% in trading in London this morning and were at 2,171p in mid-morning. The deal is fully underwritten by Hoare Govett, Morgan Stanley, Citi and Lehman Brothers. It comes as Carlsberg made public plans for a Eu4bn capital increase last Friday. Turn to EuroWeek on Friday for detailed coverage of all rights issues.