Price Set for Magna Stock Offering, Stock Jumps

An offering of 20 million shares of Magna Entertainment (Nasdaq:MIEC) was priced at $6.65 Thursday through underwriters Bear Stearns.

Magna said March 8 it will use the net proceeds for general corporate purposes, including repayment of borrowings, working capital, capital expenditures, and the potential acquisition or construction of racetracks and other facilities.

Settlement is scheduled for April 10.

The market reacted well to the news on the offering. Magna's stock was up 9.4 percent on very heavy trading to $7.43 as of 3 p.m. Friday. The volume was 9.8 million shares compared with an average daily volume of 248,000. Magna stock reached as high as $7.70 during the day.