Why Shares of Sabre Are Falling Today
Shares of Sabre (NASDAQ: SABR) fell 12% on Tuesday after the travel software company announced plans to sell $250 million worth of new common stock and a similar amount of mandatory convertible preferred stock. The announcement comes barely a week after a relatively upbeat earnings announcement, and seems to have caught investors off guard on Tuesday.
After markets closed Monday, Sabre said it intends to raise a total of $500 million from selling new shares of common and preferred stock, with the funding to be used for general corporate purposes. The offerings would dilute current holders by about 10%, but the stock's reaction is even worse than the dilution.
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Source Fool.com
