Hutchison raises yet more cash

Hutchison Whampoa has monetized a further chunk of its stake in Vodafone Airtouch through the issue of an exchangeable bond. This gives it cash and gives investors protection as the world looks for ways to finance a 3G future.

Hutchison Whampoa has completed the sale of a $2.5 billion bond exchangeable into shares of Vodafone Airtouch - the UK's largest company and the largest mobile telecommunications company in the world. With the sale, Hutchison now has a gross cash position of around $25 billion ready to be invested in global third generation 3G mobile assets. The deal was concluded just before midnight Hong Kong time yesterday.

The exchangeable bond was sold with an exercise price of GBP3.5941 per Vodafone share at a conversion ratio of 196.61, which represents a 35% conversion premium to yesterday's closing Vodafone ADR price. The bonds have a three year maturity...

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