LG Turns to Shareholders to Help Revive Android Smartphone Business

Charles Arthur, reporting for The Guardian:

Shares in LG Electronics plunged 14% on Thursday as the company announced a 1.06tn won (£590m) rights issue which will be used mainly to fund a revival of its loss-making smartphone business.

The South Korean company’s shares have already fallen by more than 40% this year, but the decline as it announced the demand from existing shareholders was its biggest daily fall in more than three years, and knocked around £625m, or $1bn, off its market capitalisation.

Android is winning!

★ Thursday, 3 November 2011