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The extraordinarily low price hurt the value of existing shares.
It offered 11 new shares for every 18 existing shares.
Shareholders could find the value of their existing shares diluted if A.I.G. issued new shares.
Wanadoo sold 97 million new shares and 5 million of existing shares owned by France Telecom.
Vivendi Universal said it planned to raise 3.3 billion euros ($3 billion) by selling existing shares.
The stock will usually convert to an equal amount of the existing shares.
Under the plan, existing shares would be canceled and stock owners would receive no compensation.
And a stock sale would dilute the value of existing shares.
Recapitalisation, both long- and short-term, waters down the value of existing shares.
Controlling shareholders, including Mr. Krishnan, sold existing shares worth 3.13 billion ringgit.
Before that, Commerzbank will also consolidate existing shares, with one new share equaling 10 old shares.
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