Rhone-Poulenc Equity Hike Through Share Issue

Rhone-Poulenc, the French chemical and drug company, has launched thepre-marketing of a share issue with equity warrants attached for an initial sum of 6.7 billion French francs ($1.13 billion), which could be increased to a maximum of 7.7 billion francs, the company announced on October 10. The equity increase will be used to refinance the successful tender offer for the minority shareholding of Rhone-Poulenc Rorer (Marketletter October 6).

Offering Structure The offering, according to R-P, will consist of shares, each with one equity warrant attached. Three equity warrants will entitle the holder to buy one new R-P share at any time over the next four years. At the end of the pre-marketing, the unit price of each share with equity warrants attached and the warrant exercise price will be fixed, and the subscription period will start, lasting three days.