Walmart defies investor push to rewrite bond rules

Walmart defies investor push to rewrite bond rules

Abhishek N. Chinnappa | Reuters
A worker talks on a phone as he stands in front of a wall with removed Flipkart logo outside the company's former office in Bengaluru, India May 9, 2018.

Bonds issued by Walmart to fund its acquisition of Indian ecommerce company Flipkart contain controversial provisions that could be used to withhold compensation to investors if the deal is delayed.

The big box retailer sold $8.5bn bonds on Wednesday whose documents contain legal language used recently by other issuers to avoid paying such compensation, in defiance of investor requests that companies stop using the language.

The bonds were part of a larger $16bn debt fundraising, the second-largest globally this year after strong demand led the retailer to increase the size of the offering.

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