The equity capital markets will
soon test a new type of capital raising for UK corporations.
Premier Foods, the Branston pickle to Cadbury chocolate
producer, is being touted as the
first company to seek shareholder approval for a concurrent
rights issue with a large-scale placement to one or more
private equity investors.
Premier is the classic good business with a bad balance
sheet. Even in these straitened times, Britons apparently
continue to comfort themselves by chewing on loaves of toasted
Hovis bread and hoovering down sickly sweet bowls of Angel
Delight. The company expects sales for 2008 to be 9% ahead of
those in 2007, with growth in the second half coming in at 10%,
driving a trading profit for the year of between £315