The eurotunnel rights issue part two: Implementation

Paul Stonham

European Management Journal, 1995, vol. 13, issue 3, 295-303

Abstract: In 1994, Eurotunnel, operator of the Channel Tunnel between Britain and France announced it was launching an £858 million gross rights issue of equities to cover its cash requirements and secure its financial future. The result was a successful piece of financial engineering and one of the largest equity rights issues in modern times in British corporate history. Part One of this Case Study covered the strategy involved. In Part Two of the Case Study, Paul Stonham focuses on the implementation of the rights issue, involving the rights discount and underwriting, warrants, pricing, questions of dilution, and alleged 'shorting'. An evaluation is made of the success of the rights issue.

Date: 1995
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