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Corning to offer new shares to fund acquisition of Pirelli“s optical components and devices business

Fiber optics maker Corning Inc. on Wednesday confirmed plans to offer convertible debt and common stock to fund its previously announced acquisition of Pirelli SpA“s optical components and devices bu…

Fiber optics maker Corning Inc. on Wednesday confirmed plans to offer convertible debt and common stock to fund its previously announced acquisition of Pirelli SpA“s optical components and devices business. Corning said it will offer 30 million shares of newly-issued common stock, and will raise about US$1.2 billion in gross proceeds through an offering of zero-coupon convertible debentures. Goldman, Sachs & Co. is the lead manager of the public offerings.The net proceeds from the deals will help pay for Corning“s acquisition of Pirelli S.p.A“s 90% stake in Optical Technologies USA, its optical components and devices business. The proceeds also will be used for general corporate purposes. Under terms of the acquisition, which was announced last month, Corning will make an initial payment of about US$ 3.43 billion and an additional a payment of up to US$ 180 million contingent on the achievement of certain business targets. The purchase will give Corning access to new products such as speciality fibers, which manage light signals as they travel across networks, or fiber gratings, which help manipulate or redirect light wavelengths. The equipment helps glass fiber networks carry more data at faster speeds.

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