Shares in Waterford Wedgwood have plummeted by 60 per cent today as the stock retreated for a second day after the company announced plans for a share sale.
At 2.30pm the stock had slid to 0.2 euro cent, the biggest retreat in almost 20 years.
On Tuesday Waterford Wedgwood said it planned to raise £153.7 million through an equity issue and a separate placing.
This is €33.7 million higher than expected when the company announced results on August 1st.
According to the luxury goods manufacturer the sale terms imply a discount of about 90 per cent on the closing price of 0.6 cent on September 16th. This would lead to a significant dilution for shareholders who opt not to take part.
Shares in Waterford Wedgwood have fallen by 90 per cent this year and at the current share price gives the company a market capitalisation of around €10.7 million, according to Bloomberg.
The funds raised by the share sale are earmarked for use in the transfer of production to lower-cost locations, advertising and increased working capital.
With the chairman Anthony O'Reilly and deputy chairman Peter John Goulandris taking their full share entitlements and corporate partners Lazard taking a futher €15 million, analysts say around €32 million is available to shareholders.
