Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Scottish Re to get $600 million investment [MarketWatch.com]
Summary: Struggling life reinsurance company Scottish Re stock sunk about 12% to $5.85 Monday following the announcement that MassMutual Capital and Cerberus Capital will each invest $300 million to gain preferred shares that constitute about 68% of the company at about $4 a share. The highly dilutive deal was defended by Scottish Re CEO Paul Goldean: 'Without this investment and ancillary financing commitments, the company may not have been able to continue operations in its current form.' While the deal is sure to bring shareholder complaints, Standard & Poor's immediately raised its credit rating on the firm. The stock has lost about 75% of its value over the past twelve months.
Related links: Press release on the investment • Media coverage: Wall St. Journal , Reuters. Commentary: Scottish Re Gets Belated Downgrade From Bear Stearns
Potentially impacted stocks: Scottish Re (NYSE:SCT)
Seeking Alpha is not affiliated with MarketWatch.com.