Cineworld shares fall after turning to the bond market for more funds, while Vodafone climbs to positive brokerage notes

Shares of Cineworld fell as much as 14% as the cinema operator planned to raise more money with the cinemas still closed.

Cineworld CINE,
-5.95%,,
which manages the Regal theaters in the U.S., said it plans to issue a convertible bond of $ 213 million at an interest rate of 7.5%. The cinema operator recorded a loss of 1.3 billion dollars before taxes in 2020 and said that the basic case is that its cinemas will reopen in May. He expects a $ 200 million return from the U.S. government and seeks shareholder approval to suspend the borrowing limit in his bylaws.

“These are (hopefully) short-term concerns exacerbated by debt accumulated during the ambitious and ultimately untimely growth driven by the acquisition of Cineworld in recent years,” said Russ Mold, director of investment at AJ Bell.

Cineworld’s shares rose 46% in 2021, as it is an ideal vehicle to reopen hopes.

Vodafone VOD,
+ 0.40%

VOD,
-0.38%
Shares rose as much as 136.62 pence as Morgan Stanley analysts led by Emmett Kelly set the company a target of 200 pence and continued to cover overweight. The broker claimed that trends in the troubled Italian market would improve, that the recovery in Germany was already accelerating and that operators, including Vodafone, were raising prices in the UK.

Vodafone also offers the deepest value in the telecom sector, and there is room for consolidation in the Spanish market, the broker said.

Wider FTSE 100 UKX,
-1.17%
traded 1.4% lower, weakening as the US open SPX,
-0.55%
approached. Royal Dutch Shell RDSA oil manufacturers,
-3.18%
and BP BP,
-2.98%
were the biggest move on the FTSE 100.

.Source