Ozzy. I regard ALL CRs very seriously. They ARE a dilution and reduce shareholders equity in their company.
That's why managements, IMO, MUST also take CRs very seriously and give absolute clear cut reasons why they need the cash and what they are going to do with it.
We have seen (through a secondary, tertiary, source) how this CR is going to be used.
Where can you put in that list a further "requirement" "To satisfy shareholders and to give them equality with S.I.s at mates rates"??
That is what you are asking for.
If shareholders who have funds available wish to retain their pre CR equity, they can very easily add to their holding by the "usual" reduction in the S.P. on the market, without ANY further dilution for other shareholders who, maybe, due to their own financial circumstances, are unable to put any more into this company.
Where would that leave "equality" for shareholders?
Giving shareholders the same deal as S.I.s only gives "equality" to those shareholders who can afford to contribute. That would create a double whammy to those that can't, they will see an (unnecessary)extra dilution in their equity just to satisfy those that have more cash at their disposal.
I'm all for "equality" but I favour more greatly the idea of a "fair go" for ALL shareholders.
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