Far Eastern Textile Ltd.: The SIZeS Offering Harvard Case Solution & Analysis

Far Eastern Textile, a leading Taiwanese telecommunications and textile company, is considering its alternatives for raising US$130 million in a fresh round of global fund raising. The choices of long term debt issue or a new common stock are investigated, but special attention is paid to an option increased by the business's investment banker.

This option entails the issuance of an innovative convertible debt instrument which joins a zero coupon and significant conversion premium over the present cost of the common stock of the company. Costs and the gain of a delayed equity instrument for investors and corporations is analyzed, as well as problems regarding security pricing in financial markets that are different.

Publication Date: 05/18/2001

This is just an excerpt. This case is about Finance

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Far Eastern Textile Ltd.: The SIZeS Offering

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