Colt shareholders told to stump up £600m

NEWS Shares in Colt have plunged to a three-year low following reports that the beleaguered telco may ask shareholders to stump up £600m in a fresh rights issue. Colt has now gained the dubious distinction of membership of the 90 per cent club, after its shares dropped 32p to 306p, down 93 per cent since early last year. The company is valued at £2.2bn, down from high of £28bn, and faces ejection from the FTSE 100 in the next index review in September. According to The Times, the company has £1.5bn in cash, which is enough to finance it through to the middle of 2002. The paper adds that analysts had expected Colt to raise the money through a mixture of debts and bonds convertible into shares. Receive news direct to your PDA:
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