Eramet drops after launching capital increase

** Shares of Eramet ERMT.PA fall around 6% after the French mining and metallurgical company launched a capital increase to raise around €500 million

** Eramet says it will use the proceeds from the rights issue to reduce its debt

** Adds that the French state has committed to subscribe for about 64% of the rights issue

** The terms look quite dilutive for shareholders, with six new shares offered for every five existing ones, so the share count more than doubles, Maxime Kogge from ODDO BHF

** Eramet has not yet found other shareholders willing to subscribe, Kogge adds