EVE PANDORA | News Article: Carthum Seeking Investors To Shore Up Finances, Says Report

Carthum Seeking Investors To Shore Up Finances, Says Report

New Eden News - Wed, 29 Oct 2008 - 00:00

Pimebeka - Amarr Certified News is reporting that the Carthum Conglomerate has begun speaking with a number of major financial institutions, industrial corporations and noble houses throughout the Empire, the Caldari State and the Khanid Kingdom about a limited stock offering intended to shore up the Conglomerate's overextended finances. This is on the heels of Carthum's recent earnings report, which continues to worry investors and be a drag on the company's stock.

According to the report, Carthum representatives have met with Caldari Funds Unlimited and the Tash-Murkon Family among others, though no agreement appears to have yet been reached. Sources close to the company board have indicated that Amarr investors might gain an edge due to the Sarum Family's wariness about selling significant chunks of stock to Caldari corporations so closely tied to State Executor Tibus Heth. However, with Carthum's cash reserves critically low, the corporation appears to be running out of choices; the longer the crisis continues, the worse it is likely to get, with far-reaching consequences to its shareholders.

For the moment, Carthum's proactive approach to their financial troubles appears to have stabilized a downward spiral that started on 10 October, the date of their troubling earnings report. However, experts believe that if the company is unable to find a new investor within the next few weeks, or if it is forced to make large concessions in order to secure additional capital, that could weaken the company even further. According to The Kimotoro Report 's Nigirada Uoyaki, "if the company makes a new stock offering at a low price in order to entice new investment, it could dilute the power of the current board of directors to the point where it would be vulnerable to a hostile takeover."