Freddie Mac shares sink on capital concerns (AP)

Thursday July 3, 4:33 pm ET By Alan Zibel, AP Business Writer Shares of mortgage finance company Freddie Mac fall after report raises capital questions WASHINGTON (AP) -- Investors are worried about mortgage finance company Freddie Mac's plans to shore up its finances. Shares of the McLean, Va.-based company fell nearly 9 percent on Thursday after a report in the Wall Street Journal highlighted concerns about potential trouble with the company's plans to raise $5.5 billion in capital through stock sales. Shares dropped $1.42, or 8.9 percent, to close at $14.50 after earlier falling to a 13-year low of $14.35. The company's stock traded at more than $67 a share as recently as May 2007. Freddie Mac has been waiting to initiate the offering because its stock is not yet registered with the Securities and Exchange Commission. The... [read full story]