Harman International To Sell 9 Million Shares; Stock Drops

   DOW JONES NEWSWIRES 
 

Harman International Industries Inc. (HAR) will sell 9 million shares to boost its liquidity, reduce debt under its revolving credit facility and fund general corporate purposes, including potential acquisitions.

Shares fell 6.5% to $21.80 in after-hours trading. The auto supplier's stock has lost more than a third of its value in the past nine months but is up 39% this year.

The offering will dilute Harman's current shares by about 15%.

Harman, which makes audio products and gets about 70% of its revenue from the auto industry, has been suffering from declining demand for cars and has said it will participate in the government-backed auto-supplier support program. The company has cut 2,000 jobs and agreed to sell its 50% stake in a Korean venture to its partner.

In the third quarter, Harman's loss widened to $1.09 a share from 6 cents a year earlier, as revenue dropped 42%.

The stock offering includes an option for the underwriters to purchase up to 1.35 million additional shares to cover overallotments.

J.P. Morgan Securities Inc. is the sole book-running manager for the offering.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]