Financeweb

When companies announce rights issues, their share prices generally fall. Not so Fastweb’s. Just before the Italian broadband operator announced a E800m rights issue in January, its stock stood at E38.68 – on a theoretical ex-rights basis. Over the offer period it has climbed to E41.81, a rise of 8%. Why has the deal been so well received? The main reason is that investors are eager to fund growth stories at present. They are keen to take on risks in a search for high returns. That said, the equ...