French train maker Alstom on Wednesday reported third-quarter sales below expectations and said it was still studying the possibility of a capital increase to cut its debt pile, sending its shares 7% lower.
The maker of France’s iconic TGV trains lost half its market value late last year after it slashed its full-year free cash flow forecast in October, and in November said it would consider a capital increase.
On Wednesday, Alstom said it was still studying the feasibility and potential size of a share sale.
“Keeping everything else equal, statement suggests that capital increase could now be a more likely option than before,” J.P.Morgan said in a note to clients.
