suncorp metway to raise up to a$1.3b, page-20

'S funny you guys are so relaxed and even happy about this!

I have had had enough of share issues. All of them seem to get done because there are huge discounts on the placements but in order to finance them it seems institutions go in and sell the market and take a turn in the placed stock almost immediately. Meanwhile they are doing tremendous damage to the share holder base.

Suncorp Metway is about to SMASH their share price with a $1.3bn issue.

For shareholders that don’t get offered the placement stock and don’t have the opportunity to tip them out immediately the way the institutions do it’s a rough trot. You simply have a transfer of value from retail shareholders to institutions which is in no measure compensated for by share purchase plans…because they are much smaller, limited to $5,000 per shareholder, and by the time those are done the share prices have already fallen. Suncorp must be really desperate for cash to treat their shareholders in such a way.

This is bad.