Disney Comes to Rescue Euro Disney, Shareholders Unimpressed

Disney (DIS) is coming to the rescue of its struggling offshoot Euro Disney. This is the second time in three years, the subsidiary is getting a lifeline, this time it's for 1 billion euros. The troubled economy in Europe is being closely watched by investors so it shouldn't be too much of a surprise that a theme park there is having a rough time. But the president of Euro Disney, Tom Wolber, said 'Disneyland Paris is Europe's number one tourist destination.' TheDeal's Paris-based correspondent Paul Whitfield is following the story and explains why shares in Euro Disney, which operates Disney Land Paris, tumbled more than 20% following the announcement as investors digested a plan that will massively dilute the equity of a group with a market capitalization of just 108 million euros and could result in its delisting.