Equity-linked market hits a peak with unique duet of convertibles into STM

31 Jul 2003

The bull run in the equity-linked market reached a high this week with a bizarre pair of issues totalling $1.7bn, both convertible into the stock of semiconductor maker STMicroelectronics (STM).

STM itself launched a $1.2bn convertible - only the second ever in Europe to achieve a negative yield - while Italian defence company Finmeccanica sold a Eu439m bond exchangeable into the company's stock.

The two issues were a deftly co-ordinated exercise that achieved the objectives of both issuers - but after being priced aggressively, ...

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