Fitch puts Jabil Circuit on watch

Fitch Ratings said it placed Jabil Circuit, Inc.'s BBB- issuer default rating, senior unsecured revolving credit facility and senior unsecured debt rating on Rating Watch negative following the company's announcement of an $900 million tender offer to purchase the shares of Taiwan Green Point Enterprise Co. at NT$109 per share.

The agency said that Taiwan Green Point's plastic injection molding services for the mobile handset market would compliment Jabil's significant business with Nokia and other consumer products.

However, Fitch expects the tender offer, which expires on Jan. 12, to be financed in majority by debt.

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