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Freight co. CAI Int'l prices shares at $19.85 each

SAN FRANCISCO (AP) -- CAI International Inc. said Thursday that 3.8 million shares of its stock priced at $19.85 each, with more than one-third of the shares being sold by the company's chairman and a former CEO.

That's a 4 percent discount to Wednesday's closing price of $20.70, and shares dropped 75 cents, or 3.6 percent, to $19.95 in morning trading. The company has about 19.3 million shares outstanding.

CAI, which leases freight containers, said it planned to use the proceeds for working capital and could use some to repay debt.

More than 2.5 million of the shares are coming from the company. Nearly 900,000 are being sold by co-founder and Chairman Hiromitsu Ogawa, the company's biggest shareholder with a 33 percent stake, or 6.4 million shares.

Former CEO Masaaki Nishibori, who remains on CAI's board, is selling his entire stake, about 100,000 shares. The Development Bank of Japan is also offering around 250,000 shares.

CAI won't receive any proceeds from the sale of shares by the selling executives or the bank.

The offering is expected to close around next Tuesday.