Shares in pharmaceutical company Elan fell by 25 cent to €3.35 in Dublin today after it announced that it would seek shareholder approval to issue up to 120 million new shares.
Elan said the resolution would be put at an EGM in Dublin on March 18, though chairman Garo Armen told Reuters the company had no intention of issuing shares at current levels. He said Elan wanted financial flexibility to strengthen its balance sheet when appropriate.
A similar motion, for 200 million shares, was turned down by shareholders last year. 120 million shares represents about a third of Elan's existing share capital.
Elan has been selling off assets in a bid to pay off a $1.5 billion bond due at the end of this year.
