While the market lauded this strategic initiative, the same could not be said for German chemical company LANXESS (XTER:LXS), which also conducted a capital raise. LANXESS issued new shares equivalent to 10% of its equity capital (thereby diluting existing shareholders) to fund restructuring. Although investors deemed this as negative news, we expected such measures and were pleased to see action initiated by the well-respected former CFO who recently returned as CEO.
From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund Second Quarter 2014 Shareholder Letter.
