CIT Rises As It Sweetens Debt Exchange Offer Terms

Posted in pre-market 
October 19th, 2009

CIT Group, Inc. (NYSE:  CIT) is trading higher this morning on the news that the troubled lender has sweetened part of its debt exchange offer to convert more debt holders via an SEC filing, however there are still reports that more of the debt holders want to opt for bankruptcy so they have a far higher place in the creditor line.  There is also the news that Carl Icahn has offered to extend $6 billion in loans to the company, which is what really got the shares moving before 9:00 AM EST this morning.

UPDATE at 10:45 AM EST…. Shares are still up 12.5% at $1.26, but that is off of highs of $1.36 earlier this morning.  We have seen roughly 86 million shares after 1 hour and 15 minutes plus the pre-market activity compared to average daily volume of just over 100 million shares.

UPDATE at 9:08 AM EST.… CIT is up over 17% at $1.32 on almost 12 million shares after reports are out that Carl Icahn has offered to underwrite $6 billion in loans to CIT Group.

Regardless, CIT is up about 8% at $1.22 at 8:09 AM EST and we have already seen 600,000 shares trade hands.  Average volume is still over 100 million shares per day now, so active here is a relative notion. -JON OGG

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