sp rio next few wks, page-19

I just dont think we are going to see RIO drop all the way back to $60 following the rights issue. Yes, assuming the Friday price plus the $28 rights issue, the average price (assuming you take up your rights) is ~$58 and one can argue that this is where it will pull back to. HOWEVER, RIO has been substantially de-risked as a result of this deal and saved from taking up the very unattractive Chinese deal, so we need to factor in some positive price rise due to this.

Can somone also offe rtheir opinion on what price the rights will trade at? They are rights to buy at $28 right? So surely they will just trade at the current RIO price less the $28, i.e. if RIO is rtading at $70, you buy the right at $70-28 = $42 such that you total once exercising the right will be $70? Inre ality actually they will trade at the expected future price of RIO shgares following the rights issue, less the $28? Any opinios/thoughts?