A founder of the world's biggest household cleaning products group Reckitt Benckiser failed today in a bid to raise €1 billion by selling shares, bringing in less than half that amount.
JAB Investments sold 25 million shares in Reckitt at 940p apiece to raise around £235 million sterling, said Morgan Stanley, the investment bank running the placing with big investors.
Reckitt Benckiser shares, pummelled 10 per cent lower yesterday on news of the planned sale, rallied 1.17 per cent to 945p.
"It's a difficult time in the market; there is not a huge appetite out there for new stock," said Mr Stuart Fraser of fund manager Brewin Dolphin.
Morgan Stanley said JAB will retain an interest in Reckitt of around 20.7 percent after the sale.
JAB will not make any further sales of Reckitt stock over the next six months, and then will not sell more than 35 million shares in the following six months, Morgan Stanley said.