Taken from the Blue Index blog

Prudent Management at Informa
May 1st, 2009

Thats a clever move by the management at Informa (INF). The group have this morning announced a fully underwritten 2 for 5 Rights Issue to raise net proceeds of approximately GBP242m.

Even though Informa have comfortable headroom with their current facilities, the board took a decision to go for a rights issue in view of an economic environment that shows no signs of improvement. CEO Peter Rigby said cost savings of GBP30m had already been saved from the final dividend, but added the Board are very intent on retaining value for Shareholders and had decided on a rights issue as renegotiation of the Groups covenants at the present point in time would result in a significant incremental expense versus the current pricing, incur material one-off fees, increase leverage and likely provide limited additional covenant headroom.

Full transcript here
http://blog.blueindex.co.uk/2009/05/prudent-management-at-informa/

Gone long on INF results thursday 12th of May , nice chart.