Hagemeyer waives cash settlement of convertibles

New York, Dec. 1 - Hagemeyer said it has waived its right to settle conversions of its two series of convertible bonds in cash.

As a result, any conversions will be paid in stock.

The company said it has taken this decision because of IFRS accounting rules. Under IFRS, the right to pay in cash means the option elements of the bonds must be classed as liabilities. Fair value adjustments to the option value have to be recorded as net income or expense.

Hagemeyer has two convertibles outstanding, €150 million of 5.75% convertible subordinated notes due 2009 and €135 million of 3.5% convertible subordinated notes due 2012.

Hagemeyer is a Naarden, Netherlands, supplier of electrical materials and safety and maintenance and repair products.

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