TYRE MAKER'S * France - It's Michelin’s deflating share prices ?

The hissing sound is: Michelin’s deflating share price

Paris,France -FT -September 28 2010: ... Investors, surprised by the French tyre maker’s €1.2bn rights issue, marked down its shares by more than 10 per cent on Tuesday. They worried that the desire to add 12 per cent to the company’s market capitalisation was a sign of something amiss. After all, this was the first cash call in 30 years... From the outside, at least, Michelin’s tread looks in reasonable condition. The recession was bad, but net income for the the half year was €504m, a respectable rebound from a €122m loss a year ago. The company cut into inventories and net debt, creating a nice rebound in free cash flow... (Photo from t0.gstatic: The Michelin baby! isn't?)


* Michelin launches €1.2bn cash call

Paris,France -FT, by Peggy Hollinger & Paul Betts -September 28 2010: -- Michel Rollier, head of Michelin, declared the crisis in the tyre market over as the French group launched a €1.2bn ($1.6bn) rights issue to fund an aggressive investment programme... “The opportunities are there and Michelin is now ready to seize them,” Mr Rollier said as he unveiled a 2-for-11 cash call at a deeply discounted price of €45...