Corning: Convertible Preferred Stock
Posted: 22 Sep 2008
Date Written: December 1, 2005
SUBJECT AREAS: Behavioral finance, Convertible securities, Dividends, Equity capital, Financial strategy, Financing, Preferred stock, Telecommunications.
Corning, with large investments in fiber optic technology, was hit particularly hard by the collapse of the telecommunications industry in 2001. With over $4 billion in debt, the firm's survival appears to rest on raising additional equity capital. James Flaws, the chief financial officer, is considering raising $500 million with an issue of mandatory convertible preferred stock.
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