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WHR — Whirlpool News Story

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Whirlpool edges higher after upsized raise, activist investor letter

Updates with activist investor letter

    ** Whirlpool WHR.N shares up 0.7% premarket at $72.16 after home appliance maker's above-target raise and activist investor letter

    ** Co early Weds announces pricing public offerings of ~6.9 mln shares at $69 for $475 mln raise and
    $525 mln 8.5% 3-yr mandatory convertible preferred stock

    ** In addition, co sold $30 mln worth of shares at $69 in private placement to Guangdong Whirlpool Electrical Appliances Co., a subsidiary of Shanghai-listed Whirlpool China 600983.SS

    ** David Tepper, billionaire founder of hedge fund Appaloosa Management, sends letter to WHR's board saying recent issuance of equity "at a very high cost of capital" resulted in a large, unnecessary dilution of shareholders

    ** Appaloosa is 3rd largest WHR holder with ~3.9 mln shares, nearly 7% of co's ~56.52 mln shares outstanding, per LSEG

    ** WHR shares tumbled ~14% to close at $71.67 on Tues after co launched concurrent $800 mln offerings to repay debt and for general purposes, including strategic investments in automation

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    * Wells Fargo, JP Morgan, and Citigroup lead bookrunners for offering

** Through Tues, WHR shares down 0.7% YTD and ~36% below intraday 52-week high of $111.96 hit in early Jul

    ** Avg rating of 10 analysts is "hold"; median PT $79.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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