Comdisco Plunges After Hiring Advisers, Tapping Loans

Comdisco (CDO Quote) set plans to retire some of its debt and said it hired financial advisers to review the company's strategic alternatives, but investors responded to the news by sending the technology services provider's shares to a 52-week low.

Comdisco retained Goldman Sachs and McKinsey to help the company find strategies that will increase value for shareholders. The company has also drawn down about $880 million of committed loan facilities for general corporate purposes, including the retirement of $825 million in commercial paper obligations as they become due.

Shares of Comdisco, which is based in Rosemont, Ill., dropped $4.07, or 57.5%, to $3.01 in recent New York Stock Exchange trading, easily breaking through the old low of $7.03. Earlier Tuesday, the stock traded as low as $2.50.