Goodyear announces stock offering |
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Thu, 10 May 2007 00:07
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AKRON, Ohio (AP) - Goodyear Tire & Rubber Co. said Wednesday it is planning a public offering of more than 22.5 million shares of its common stock.In addition, Goodyear intends to grant the underwriters a 30-day option to purchase up to nearly 3.4 million additional shares to cover any over-allotments.The company estimates the proceeds, after deducting underwriting discounts and commissions, will be approximately $725 million. The estimated net proceeds would be approximately $834 million if underwriters exercise their entire overallotment option.Goodyear intends to use part of the proceeds to repay approximately $315 million of debt in notes due in 2011 and 2015.Deutsche Bank Securities, Citigroup Global Markets and Goldman Sachs & Co. will be joint managers for the offering.Goodyear's stock has soared since July, more than tripling to reach a recent seven-year high.Goodyear shares rose 35 cents to $33.61 Wednesday, then fell $1.71, or 5.1 percent, to $31.90 in extended trading after the offering was announced. The shares have traded within a 52-week range of $9.75 and $35.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Goodyear, Akron, developer share HQ plan 