SEATTLE -
Washington Mutual shares tumbled in early trading Tuesday amid concerns over its exposure to turmoil in the mortgage and credit markets.
Shares of the nation's largest savings and loan slid more than 8 percent a day after it said it would close offices, lay off more than 3,000 workers, slash its dividend, set aside up to $1.6 billion for loan losses in the fourth quarter and seek to shore up its finances with a $2.5 billion convertible preferred stock offering.
WaMu has not yet priced its offering, but increasing the total number of company shares will dilute their value for existing stockholders. WaMu shares fell $1.78 to $18.10 early Tuesday.
When WaMu does price the sale, it may have to do so at less than favorable terms, if the other recent deals are any indication.
Washington Mutual shares tumbled in early trading Tuesday amid concerns over its exposure to turmoil in the mortgage and credit markets.
Shares of the nation's largest savings and loan slid more than 8 percent a day after it said it would close offices, lay off more than 3,000 workers, slash its dividend, set aside up to $1.6 billion for loan losses in the fourth quarter and seek to shore up its finances with a $2.5 billion convertible preferred stock offering.
WaMu has not yet priced its offering, but increasing the total number of company shares will dilute their value for existing stockholders. WaMu shares fell $1.78 to $18.10 early Tuesday.
When WaMu does price the sale, it may have to do so at less than favorable terms, if the other recent deals are any indication.
1 comment:
After cutting 1,000 jobs and dismantling much of its subprime mortgage operation in September, Seattle-based WaMu will now get out of the business entirely.
Post a Comment