Facing heavy debts and weaker profits from international operations than expected, CMS disclosed a restructuring plan that would slash dividend payments while raising cash by selling a tracking stock tied to its utility business.
The news, which sent BT shares down almost 10% as investors fretted about it facing a cash squeeze that could force it to slash dividend payments, came as it emerged that the company is planning a series of inflation-busting price rises, which will add to consumers' woes.
They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens.
Carclo is unlikely to be the only business that will have to slash dividends to repair widening pension deficits.
Furthermore, pension funds could own a diversified portfolio and thus avoid the risk that dogged private investors, previously the dominant owners of equities: namely, that individual companies could slash dividends or go bust.From the late 1950s onwards, dividend yields were lower (often a lot lower) than bond yields.
His survival plan: Curb the shopping spree and slash dividends to key employees.
Conventional wisdom on Wall Street holds that a Bush-win rally would be bigger, partly because Mr Bush has slashed dividend and capital gains tax rates, while Mr Kerry may try to raise them.
Many economists and business analysts, even those who favor the tax cuts in theory, said today that Mr. Bush's core idea of slashing dividend taxes would do little to increase economic growth or job creation.
Richard Curr, head of dealing at Prime Markets, said: With falling sales, increased losses, a slashed dividend and a poor start to the current year, Mouchel Group is currently mired in the middle of a seemingly perfect fundamental storm.
The Dow initially rode higher Friday on news of the Fed's $400 billion guarantee for Bank of America and Citigroup, though regret quickly set in following BAC's slashed dividend and first quarterly loss in 17 years.
Germanys largest television company, ProSiebenSat.1 Media, has slashed dividend payments and is trying to restructure more than $134 million in debt, while Time Warner Cable is laden with $23 billion in long-term debt.
