Go-ahead for €100m Waterford Wedgwood rights issue

THE troubled luxury goods group Waterford Wedgwood came a step closer to shedding 1,800 jobs yesterday as shareholders gave the go-ahead for a €100 million rights issue to fund its restructuring.

The company, which reported full-year losses of almost €150 million last week, said technical motions to approve the fundraising were passed with strong support at yesterday’s EGM in Dublin.

The rights issue, which is considered highly unusual in financial circles because it invites shareholders to buy shares at a price higher than the current market price, will be fully underwritten by chairman Tony O’Reilly and deputy chairman Peter Goulandris. This means a company controlled by both men will step in to bridge any shortfall caused by shareholders deciding against exercising their rights to buy more shares.