Franklin Resources, the money and mutual fund manager that operates Franklin Templeton Investments, is reportedly preparing to pay up to $521.1 million in cash to buy back its convertible bonds that mature this year.
Many fund companies, including Janus, sold bonds between 2000 and 2002 with put options hoping that increasing prices would dissuade bondholders from exercising them. Instead, tumbling prices have forced these companies to buy the bonds back.
Copyright 2003 Thomson Media Inc. All Rights Reserved.
http://www.thomsonmedia.com, http://www.mfmarketnews.com
