Meyer Burger Declines on Capital Increase Concern: Zurich MoverPatrick Winters
Meyer Burger Technology AG fell to the lowest price in a month after Chief Executive Officer Peter Pauli was quoted as saying he won’t exclude a capital increase for the solar-equipment maker over the next 24 months.
Meyer Burger fell as much as 6.5 percent to 7.80 Swiss francs, the lowest intraday price since Jan. 4. The Thun, Switzerland-based company’s shares were trading 5.8 percent lower at 7.85 francs at 10:38 a.m. in Zurich. Meyer Burger had the sharpest decline among the 215 stocks on the Swiss Performance Index, which rose 0.2 percent.
The company needs to evaluate all financing options to get through the next 24 months, CEO Pauli said, according to Swiss financial news website cash.ch.
“Liquidity may become tight by late 2013 and that capital requirements will obviously depend on the length of the solar crisis,” Michael Foeth, an analyst at Bank Vontobel AG in Zurich said by e-mail. Meyer Burger would prefer other financing options like open credit lines or mortgages “but the longer the order trough lasts, the higher the chances for a capital increase.”
Solar-cell and panel manufacturers -- Meyer Burger’s clients -- are battling overcapacity after a boom in Chinese government spending flooded the market with cheap equipment. Pauli cut 250 jobs in November to reduce costs by 30 million francs ($33 million) amid declining sales.
Meyer Burger spokeswoman Ingrid Carstensen and spokesman Werner Buchholz could not immediately be reached by phone or e-mail to confirm Pauli’s comments.