no bargin today ..., page-23

How much further if this happens, another $1-$2 ?

The Australian Financial Review’s Chanticleer columnist Tony Boyd says the situation at QBE underlines the risk associated with changing chief executives.

“Shareholders in QBE are now facing the prospect of a capital raising to rebuild the company’s balance sheet. The size of that capital raising is not immediately clear, but it could be as much as $1 billion. In today’s environment, where the emphasis is on balance sheet strength ahead of shareholder return, QBE will probably take the opportunity to go to the market once in a big way and cover unseen contingencies. Ratings agency Standard & Poor’s warned that the company’s capital position was “deficient” even after it had announced a $US500 million subordinated convertible debt issue, which was handled by JPMorgan and Bank of America Merrill Lynch. QBE has been the subject of speculation about a capital raising for some time because of its admission in August that its claims reserves in the United States were deficient.”
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