RWE, the German utility company, has decided to sell its stake in Hochtief AF - the construction company - through a direct placement of shares and an exchangeable bond. RWE hopes to raise ?900 million.
Dresdner Kleinwort Wasserstein is joint lead manager in the ?250 million exchangeable bond portion of the deal. With a maturity of three years, the bonds will be sold with a coupon of 1.125% to 1.625% and an exchange premium of between 25% and 30% about the equity placement price.