Mac Kher

Archer Daniels Midland: New Equity Offer Signals Peak is Near

It could be even worse than this article suggests. In this so-called "second phase", ADM has not only issued future equity, but has also floated long-term debt, part of which is meant for current use. This will not only dilute the equity base starting 2011, but will also increase the company's financial risk starting now.

The question is: Will ADM be forced to raise additional equity and/or debt, and if so, when?