Wall Street takes dim view of Cree stock offering; shares drop 5 percent
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DURHAM, N.C. – Wall Street reacted negatively to a stock offering priced at $35.50 per share by Cree (Nasdaq: CREE) on Friday.
Cree shares closed down more than 5 percent, or $1.89, at $34.83.
Shares in the light emitting diode (LED) maker were trading above $38 a share before the offering was announced.
Cree issued a statement Thursday evening pricing its offering of 11 million shares at $35.50.
The underwriters of the offering can purchase another 1.65 million shares.
Cree aims to raise $390.5 million by Sept. 16.
In a statement, Cree said it “intends to use the proceeds from the offering for anticipated capital expenditures of approximately $150 million in fiscal year 2010 and additional future capital expenditure needs with the remainder being used for general corporate purposes, including working capital and potential strategic investments.”
Copyright 2012 WRAL Tech Wire. All rights reserved.
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