Can someone help me work this out.If they sold $250 mill worth...

Can someone help me work this out.

If they sold $250 mill worth of stock at $1.50 this equates to almost 167 million new shares. Current shres on issue are 198 million, which means the current dilution would equate to a SP drop to $1.90!!!

Is this for real?

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Transfield Sells Shares at A$1.50, Below Earlier Price Range

By Sarah Thompson and Sarah Jones

Nov. 24 (Bloomberg) -- Transfield Services Ltd., an Australian provider of maintenance services to miners, raised A$250 million in a share sale to institutional investors, less than initially sought, and will use the money to pay debt.

The company sold shares at A$1.50, 57 percent less than the most recent market price and lower than an indicative range used to market the offering, according to a term sheet sent to clients and obtained by Bloomberg.

The company initially sought to raise A$265 million from institutional investors, including A$180 million through a rights offer. Transfield also said it planned to raise A$120 million through a rights offer to existing retail investors. The shares were initially marketed at between A$1.80 to A$2.25 apiece, the term sheet showed.

Shares in Transfield fell 24 percent to A$3.50 on Nov. 7 when they last traded, valuing the company at A$693 million. The company halted trading in its shares before the Australian stock exchange opened on Nov. 10.

Macquarie Group Ltd. and ABN Amro Holding NV managed the sale.

To contact the reporter on this story: Sarah Thompson in London at [email protected] Jones in London at [email protected].

Last Updated: November 24, 2008 07:14 EST