After 6-9 months we may look at dilution of equity in some of our real estate projects,' he added.

Analysts say the government scheme provides protection for credit holders at the expense of dilution of equity holders.

Dilution of equity holders is a must for undercapitalised banks and there is no getting away from it - a serious flaw in the Paulson plan. '

In essence the company is suffering from a crisis of confidence which, we suspect, can only be solved by dilution of equity and consequently we retain our Sell recommendation.

Shares in Commerzbank leapt 12.5 per cent to €1.59 after it unveiled comprehensive plans to plug its capital shortfall, without resorting to state aid or significant dilution of equities.

Tata Motors' standalone earnings could decline by as much as 36 percent in the 2008/09 fiscal year beginning in April due to increased borrowings and potential dilution of equity, they said.

Palador raised funding of US$6 million from private investors including Mahesh Mathai, the director of Indian film, Bhopal Express in August 2007, after a 15% dilution of equity.

Commerzbank was the best-performing stock on the FTSE Eurofirst 300 for the second session running, after it revealed plans to reach new capital requirements without requiring state aid or further dilution of equity.

This is good as the extent of fund raising through an issue of shares that will result in a dilution of equity is less now,' said Ashutosh Goel, an analyst at Edelweiss Securities. '

Ken Lay, chairman, fleetingly mentioned a separate $1.2bn charge against equity, or a dilution of equity on the company's balance sheet, in a conference call with analysts and the media, and said it would not affect the company's credit rating.

Mr. Seaman, who is committed to staying with the company at least until the end of April, could conceivably receive more equity later on, as the agreement contemplates a further 15 percent to 20 percent dilution of equity to expand management's stake.

• The cost of financing the investment—Depending on the method chosen, financing costs can involve interest payments on borrowing, dilution of equity if new shares are issued, and the opportunity cost of using internal funds to purchase capital goods rather than distributing them to shareholders or investing them to earn a financial return.