Reality Check: Sprint Cancels Convertible Bond Offering, Stock Soars
Shares of Sprint-Nextel (S) are soaring this morning after the company confirmed rumors last night that it canceled the sale of $3 billion of convertible bonds that threatened common stock holders with substantial dilution. According to the press release, Sprint nixed the deal because “the terms being offered were not economically attractive due to unfavorable market conditions.”
Maybe they also heard the hew and cry in the 14-percent drop in the stock yesterday following Wednesday’s announcement of the sale. And from potential bond investors, who realized their investment would be underwater with the fall in the stock price.
