Corning: Convertible Preferred Stock

Posted: 22 Sep 2008

See all articles by Malcolm P. Baker

Malcolm P. Baker

Harvard Business School; National Bureau of Economic Research (NBER)

James Quinn

Harvard University - Business School (HBS)

Date Written: December 1, 2005

Abstract

SUBJECT AREAS: Behavioral finance, Convertible securities, Dividends, Equity capital, Financial strategy, Financing, Preferred stock, Telecommunications.

Corning, with large investments in fiber optic technology, was hit particularly hard by the collapse of the telecommunications industry in 2001. With over $4 billion in debt, the firm's survival appears to rest on raising additional equity capital. James Flaws, the chief financial officer, is considering raising $500 million with an issue of mandatory convertible preferred stock.

Suggested Citation

Baker, Malcolm P. and Quinn, James, Corning: Convertible Preferred Stock (December 1, 2005). HBS Case No.: 206-018, Available at SSRN: https://ssrn.com/abstract=1272012

Malcolm P. Baker (Contact Author)

Harvard Business School ( email )

Boston, MA 02163
United States
617-495-6566 (Phone)

HOME PAGE: http://www.people.hbs.edu/mbaker

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James Quinn

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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