What's wrong with WLE?, page-6

Quote -
"1. It went exdivi
2. the capital raise ( Bob thinks that it was terrific to raise money to increase the Wilson fee base )
3. See 2 , this did trade at a premium , but why pay ...."

In fact, the takeover target was at a big discount and the takeover provided an opportunity for holders of the target to get out at a decent level. That there would be fees involved is normal - but it also allows Wilson to spread the total cost of operation over a larger base - hence likely to be a slight reduction in overall fees per share.

One has to ask why the target was at such a large discount - possibilities are incompetence, greed from the pocketing of excessive fees, loss of interest by shareholders, selling down to get a better deal, and perhaps others (I am no expert on LIC operational matters, it could be any or all of these). Nevertheless it is obvious the shareholders of the target were happy to get out and the Wilson offer provided that opportunity and a clearly better management. The increased Wilson fee base is good for all Wilson holders, including those new members who stuck it out.