SAAB AB just collapsed by 16% in two days. This is due to the news that SAAB will be issuing a new emission of stocks which will bring in 6 billion kronor and dilute the current stockholders by a similar amount. Nordea has reduced its anticipated price for SAAB from 500kr to 450kr. It is currently at 350kr.
SAAB apparently needs a lot of new money for growth. It is reported this is not due to winning the T-X competition, as stated in this article: SKOLFLYGPLAN. I don't believe that for a second. Of course it is because of that and understandably so. In the same article it is also implied that simply taking a conventional loan is insufficient for their needs. I also don't believe that either. With current interest rates still very low, it would be wise to increase company debt.
What I do believe is that Investor and the Wallenberg family which own almost 50% of SAAB together want to buy shares at a cheaper price. SAAB is a becoming a much larger company and more shares circulating would befit it.
Saddened that I had bought a lot more shares before this collapse. I was caught off guard by this manoeuvre but nonetheless bought more shares yesterday. I think you should too.
