Portugal govt option to revoke convertible element of EDP bonds 'positive' - CEO |
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Sun, 14 Oct 2007 20:53
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LISBON (Thomson Financial) - The fact that the Portuguese government will retain the right to revoke the conversion element of its planned bond issue of up to 5 pct of EDP Energias de Portugal held by the state is positive for the company, CEO Antonio Mexia said.Speaking to journalists in Lisbon, Mexia said that the government's retaining of the option to reimburse bondholders with shares in the company or financially, will 'contribute to the shareholder stability for a company in a rapidly developing market.'He noted that the state's decision to opt for a convertible bond issue instead of the direct privatisation of up to 5 pct of EDP, is an 'innovative solution,' noting that the bonds are expected to have a term of at least five years.Yesterday, the Portuguese government said it plans to privatise up to 5 pct of EDP this year through convertible bonds, with the terms of the issue yet to be determined.jonathan.gleave@thomson.comjg/jag/jg/rfwCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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European govt bonds lower on equity market gains 