Case | HBS Case Collection | December 2005 (Revised November 2006)

Corning: Convertible Preferred Stock

by Malcolm P. Baker and James Quinn

Abstract

Corning, with large investments in fiber optic technology, was hit particularly hard by the collapse of the telecommunications industry in 2001. With over $4 billion in debt, the firm's survival appears to rest on raising additional equity capital. James Flaws, the chief financial officer, is considering raising $500 million with an issue of mandatory convertible preferred stock.

Keywords: Financial Strategy; Financial Condition; Financial Instruments; Valuation; Capital; Public Equity; Stock Shares; Business or Company Management; Strategy; Manufacturing Industry; Industrial Products Industry;

Citation:

Baker, Malcolm P., and James Quinn. "Corning: Convertible Preferred Stock." Harvard Business School Case 206-018, December 2005. (Revised November 2006.)