Corporate News: ABC Learning shares tumble amid debt fears

ABC Learning's shares were already under pressure before its earnings report, amid concerns about its debt and earnings dilution brought about by raising capital to fund acquisitions. In 2006, for example, the company acquired Texas-based Children's Courtyard, a provider of child-care serv...

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Bibliographic Details
Published inThe Wall Street journal Asia
Main Author Susan Murdoch and Laura Santini
Format Newspaper Article
LanguageEnglish
Published Hong Kong Dow Jones & Company Inc 27.02.2008
Subjects
Hedge funds
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Summary:ABC Learning's shares were already under pressure before its earnings report, amid concerns about its debt and earnings dilution brought about by raising capital to fund acquisitions. In 2006, for example, the company acquired Texas-based Children's Courtyard, a provider of child-care services, for $66 million. He also echoed recent calls by other business executives for tighter regulation of hedge-fund short sales. "Right now it's a bit surreal, I'm just so shocked. When you look at the assets this company has, and if you look at the value of those assets on a global basis, it's quite extraordinary what fear and momentum can do," Mr. [Eddy Groves] said at a news briefing.