Reports: Continental May Sell Bonds in Refinancing Move
Continental AG, is reportedly planning to sell bonds to refinance its debt. Bloomberg quoted two people “familiar with the situation” as saying the move follows HeidelbergCement AG’s so-called junk-bond sale. In this case demand outstripped supply and HeidelbergCement raised 2.5 billion euros selling its bonds. At the same time, Morgan Stanley made “large upward adjustments” to its earnings for Continental, its 2010 earnings per share predictions by 128 per cent to 2.74 euros. The analysts also raised their 2011 and 2012 estimates to 5.14 and 6.35 euros (up 52 and 32 per cent respectively). The bank’s new price target is now 37 euros, up 131 per cent from its previous position of 16 euros.