Funds raised in European equity issues could reach as much as €300bn ($386bn) in 2009 as companies attempt to shore up their balance sheets, say bankers and analysts. The sharp increase in issues so far this year is likely to accelerate, with funds raised in 2009 expected to reach their highest level since 2001. Goldman Sachs predicts that, outside of financials, companies will try to raise €100bn to €300bn in 2009. Industries making cash calls are likely to include real estate, construction, utilities, and metals and mining. Goldman estimated that net debt to equity for European companies was 54%, compared with an average of 48% since 1988. The scale of the potential cash calls has raised concerns about the market’s capacity to absorb all the new equity issued.
FT.com/alphaville
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment