Financial Times FT.com

Rexam considers £350m rights issue

By Pan Kwan Yuk

Published: July 26 2009 21:04 | Last updated: July 27 2009 10:52

Rexam shares fell nearly 10 per cent on Monday after the packaging and can group said it was considering raising several hundred million pounds of equity from existing shareholders to avoid the risk that its credit rating might be cut to junk status.

The company, whose clients include Coca-Cola and PepsiCo, said continued tough trading conditions meant cash flows had not improved and the risk of a downgrade had become “unacceptably high”.

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