Invesco's Barnett and Walker warn companies on equity raisings - reports

'Strong rationale'

Invesco’s co-heads of UK equities Mark Barnett and Martin Walker have said they will not support companies asking shareholders for extra cash without a “strong rationale”, according to reports.

The pair wrote to UK companies telling them they must come up with compelling cases for attempting to raise "precious and expensive" equity from investors, in a letter seen by Sky News. They said firms should first make use of Government schemes including the £330bn Covid Corporate Finance Facility (CCFF) before asking for support from shareholders. The move comes as a number of top firms are expected to try and raise cash on the secondary market, with e-commerce giant Asos on Wednesday announcing it had successfully raised almost £250m through a share placing. Barnett ousted from PLY...