Fannie Mae will take steps to keep itself listed

thinkpod

WASHINGTON, Nov 26 (Reuters) - Fannie Mae (FNM.P: Quote, Profile, Research, Stock Buzz) will take steps to keep its share price above a dollar in order to keep itself listed on the New York Stock Exchange, the mortgage-finance company said on Wednesday.

Fannie Mae and its sibling company, Freddie Mac (FRE.P: Quote, Profile, Research, Stock Buzz), were seized by regulators in early September which all but wiped out equity shareholders.

The companies' stock is still listed, though, and prices have often moved below a dollar a share. At that value, the exchange could move to have the companies delisted.

Specifically, the companies could be in jeopardy of delisting if their average share prices were to fall below one dollar for more than 30 days.

Fannie Mae said that it plans to take steps to raise its share price, including a possible reverse stock split, in order to be in compliance by May 11, 2009.

"Under applicable NYSE rules, Fannie Mae now has until May 11, 2009... to bring its share price and its average share price for 30 consecutive trading days above $1.00," the company said in a statement. "If it fails to do so, the NYSE will initiate suspension and delisting procedures."

Lawmakers and policymakers in Washington will in the next few months begin to debate the future of the two companies, and whether they should remain in public hands.

(Reporting by Patrick Rucker)

thinkpod

两天股价从0.3 飙到0.66...这次目标应该在1。2左右

thinkpod

Looks like Fannie Mae (FNM) is headed for a reverse stock split. The Washington-based mortgage lender said Wednesday that it told the New York Stock Exchange it intends to push its share price back above $1 for 30 straight days between now and May in a bid to avoid being delisted from the NYSE. Fannie said it’s working with its regulator, the Federal Housing Finance Agency, “to determine the specific action or actions that Fannie Mae will take to cure the deficiency.”

But with taxpayers owning almost 80% of the company as a result of a federal takeover in September, the most likely option for the company to boost its stock price is to do a reverse split, as Fannie notes in its press release. The company, whose shares recently fetched 74 cents after trading earlier this year as high as $40, says it “expects to determine the actual number of shares that will produce one share of common stock as a result of any reverse stock split based on both the market price of Fannie Mae’s common stock prior to announcement of the split and additional input from FHFA and Treasury.”

Reverse splits were once the province of companies you’d never heard of. But in recent years a number of high-profile outfits that fell on hard times — including a predecessor company to AT&T (T) and computer giant Sun Microsystems (JAVA) — have moved to prop up their share prices through reverse splits. Considering the news in the economy of late, Fannie surely won’t be the last big-name company to head down the reverse-split road.

ourgame

真有能力也不会落到今天这个地步

Reisende

原帖由 thinkpod 于 2008-11-27 12:44 发表
两天股价从0.3 飙到0.66...这次目标应该在1。2左右

预计挺牛的，不过现在又跌了不少，会不会再涨回去？