Doosan Infracore Slumps on Global Share Sale Report: Seoul Mover
Doosan Infracore Co. (042670), South Korea’s largest construction equipment company, declined the most in more than two years in Seoul trading after a report of a possible $400 million depositary-receipt sale sparked investor concern that it would dilute shareholdings.
Doosan Infracore fell 8.3 percent, the most since October 2011, to close at 13,250 won. The stock was the second-worst performer on the MSCI Asia Pacific Index. Doosan Heavy Industries & Construction Co. (034020), its biggest shareholder, dropped 3.3 percent.
The building-equipment maker is considering selling depositary receipts overseas, Doosan Infracore said in a filing after the report by MoneyToday. Doosan Infracore hired JPMorgan Chase & Co. and HSBC Holdings Plc to help sell the receipts to raise funds for possible future investments in China and Europe as well as for its Bobcat unit in the U.S., MoneyToday reported today, citing unidentified investment banking officials.
“News of Doosan Infracore seeking a global depositary receipt sale was totally unexpected,” said Richard Park, an analyst at Korea Investment & Securities Co. in Seoul. “If the report is correct, it won’t be good news for investors.”
Doosan Infracore agreed to buy Bobcat for $4.9 billion from Ingersoll-Rand Co. in 2007.
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