SBD/11/Finance

Print All
  • CART WHEELS ITS WAY ONTO THE EXCHANGE, STOCK PRICE RISES 24%

              In its first day of trading on the New York Stock
         Exchange, the price of CART stock "rose more than" 24%
         yesterday, according to Bill Koenig of INDIANAPOLIS STAR-
         NEWS.  CART issued 4.7 million shares of stock at $16 each,
         "raising about" $75M.  With "[m]ore than" 3.7 million shares
         traded yesterday, the price "went as high as" $21 before
         ending the day at $19.9375 a share, up $3.9375 from its
         opening.  The stock is listed under the symbol OPW, "a
         reference to the open-wheel style" of CART cars (STAR-NEWS,
         3/11).  In Detroit, Dave Phillips reports that the offering
         raised $63M for CART, and that, with the money raised, the
         organization "has begun scouring North America for motor
         sports acquisitions."  CART will use "part of" the money to
         buy the Indy Lights training league, and President Andrew
         Craig said that the company "plans to buy a major open-wheel
         driving school by year-end and additional open-wheel race
         circuits."  Although Craig "declined further comment" on
         acquisitions, industry observers say "potential targets"
         include the Toyota Atlantic Championship Series, the Formula
         Ford 2000 series and the Barber Dodge Pro Series (DETROIT
         NEWS, 3/11).  Ryan Jacob, Dir of Research at the IPO Value
         Monitor, on the CART IPO: "This company is an opportunity to
         capitalize on the growing popularity of auto racing
         worldwide.  They have some of the best drivers and team
         owners in the world" (AKRON BEACON JOURNAL, 3/11). CNN's Jan
         Hopkins, on CART's debut: "Not bad for a company that lost
         more than $15 million last year" ("Moneyline," CNN, 3/10). 
    
    

    Print | Tags: Champ Car World Series, DaimlerChrysler, Finance, Time Warner, Toyota
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug