BUZZ-Afren: Drops as recapitalisation plan means equity dilution

** Afren Plc (LSE: AFR.L - news) 's shares fall as much as 26 pct & top pct loser on FTSE 250, after the indebted oil producer says existing shareholders to hold only about 11 percent stake post recapitalisation

** Most traded stock on the LSE, with over 30 mln shares having changed hands in the first half hour of trade vs daily avg of 23 mln

** Co, whose assets are primarily in Nigeria, says reaches an in-principle agreement to address funding needs and recapitalise its capital structure

** Stock has shed 96 pct of its value since July end, hurt by oil price rout, dismissal of top executives, absence of probable reserves at a Iraqi Kurdistan field and a default on debt payment

** Out of the 14 analysts covering the stock, 6 have a "strong sell" or "sell" rating on it, while 8 rate it as "hold", according to Reuters data