Reuters: Hot Stocks: UPDATE 2-Directory publisher Hibu's shares drop on profit warning

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UPDATE 2-Directory publisher Hibu's shares drop on profit warning Sep 19th 2012, 09:33 Wed Sep 19, 2012 5:33am EDT * Says some options may dilute shareholders' interests * Shares fall as much as 48.5 pct Sept 19 (Reuters) - Yellow Pages publisher Hibu Plc , battling a huge debt pile and a dying core business, said it would miss full-year core earnings expectations, sending its shares down nearly 50 percent. The company also warned that its ongoing restructuring could result in a dilution of shareholders' interests. "While no decision has yet been made, certain options may result in a dilution of existing shareholders' interests including some options which may attribute little or no value to the group's ordinary shares," Hibu said. The company declined to comment beyond the press release it issued on Wednesday. "This is another profit warning and the shares are probably totally worthless," said Panmure Gordon & Co analyst Alex Degroote. Hibu, previously known as Yell Group, has been hurt most by the decline at its legacy phone book business. The company was also slow in adapting to the shift to online advertising as people began using the Internet to look up local listings. Hibu's debt was built up through a series of acquisitions, including the 3.3 billion euro ($4.31 billion) purchase of a Spanish directories business in 2006. Since then, it has undergone a comprehensive refinancing and restructuring in 2009, a covenant reset and amendment in 2011 as well as a debt buyback this year. Link this Share this Digg this Email Reprints

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