Shares in Chartered Semiconductor Manufacturing tumbled 39% yesterday after the Singapore-listed chip maker confirmed on Monday that it will seek S$464 million $300 million in fresh capital through a rights issue. The sell-off was likely sparked by the deep discount to the market price, which will severely reduce the earnings and book value per share for shareholders who do not wish to increase their exposure to a loss-making company in an industry where the near-term recovery prospects are questionable.
And with the share price down so significantly, the offer has now become a lot less attractive for investors who would have been willing to subscribe, throwing doubt over the participation of minority shareholders in...
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