DOW JONES NEWSWIRES
Harman International Industries Inc. (HAR) will sell 9 million
shares to boost its liquidity, reduce debt under its revolving
credit facility and fund general corporate purposes, including
potential acquisitions.
Shares fell 6.5% to $21.80 in after-hours trading. The auto
supplier's stock has lost more than a third of its value in the
past nine months but is up 39% this year.
The offering will dilute Harman's current shares by about
15%.
Harman, which makes audio products and gets about 70% of its
revenue from the auto industry, has been suffering from declining
demand for cars and has said it will participate in the
government-backed auto-supplier support program. The company has
cut 2,000 jobs and agreed to sell its 50% stake in a Korean venture
to its partner.
In the third quarter, Harman's loss widened to $1.09 a share
from 6 cents a year earlier, as revenue dropped 42%.
The stock offering includes an option for the underwriters to
purchase up to 1.35 million additional shares to cover
overallotments.
J.P. Morgan Securities Inc. is the sole book-running manager for
the offering.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com