Rexam scrapped its interim dividend as the beverage can maker swung to a loss for the first six months of the year and confirmed plans to raise £351m in a fully underwritten rights issue.

Although Rexam is not facing any short-term debt refinancing difficulties, the group said that the 4-for-11 rights issue would help to protect its access to cheaper financing, as the recession causes trading to deteriorate more than had been earlier anticipated.