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Washington Mutual Slashes Dividend, Cuts Jobs
By Jennifer Yousfi
Money Morning
Shares Washington Mutual Inc. (WM) dropped 10% yesterday (Tuesday) after the mortgage lender announced it raised $7 billion in capital, while slashing its dividend and cutting 3,000 jobs.
Seattle-based WaMu, as the savings and loan is often called, raised the capital by issuing 176 million new shares at $8.75 per share, a 33% discount to Monday’s closing price of $13.15. It also issued $5.5 billion in convertible preferred shares, the company said in a statement today.
Private equity firm TPG Inc. purchased $2 billion of the new securities. Current WaMu institutional investors mostly purchased the remainder.
The company also announced…
9Apr2008 | Money Morning | Comments Off | Continued
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