Monday, March 31, 2008

Raising Cash to Stay Alive

Lehman is going to offer 3 million shares of convertible preferred shares to raise $3 billion in cash. Details to come. KKR Financial announced it will sell 20 million in new shares to raise capital. No word yet from TMA, who received yet another extension on the deadline to raise capital to avoid liquidation by its lenders. Also, FNMA and FRE will be making announcements on their own plans to raise capital. All of this capital raising makes it very difficult to be a common shareholders, given the amount of dilution, however, it appears to be the only game in town.

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