http://www.businessspectator.com.au
Published 2:51 PM, 23 Feb 2011 Last update 4:26 PM, 23 Feb 2011
by a staff reporter
Engineering group Downer EDI has confirmed it is considering a number of capital management options in the wake of writedowns on its Waratah train project in NSW.
The company issued a statement to the Australian Securities Exchange (ASX) in response to a report in The Age which said it was planning a large capital raising to boost its balance sheet and avoid a ratings downgrade.
“Downer continues to review its capital position as it finalises its results and will update the market on Monday 28 February 2011,” the company said.
“No decision in relation to its capital position has been taken at this time.”
Downer, which is due to release its first-half results next week, is facing a shareholder class action over the Waratah project. In January, the company revealed a $250 million provision, further delays and management changes on the project.
Its shares closed up 0.76 per cent to $3.97, having reached as low as $3.88, against a flat benchmark index.
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