Ann: Letter to Shareholders Re Rights Issue , page-74

There has been a lot of discussion on the pricing of the rights issue at $2.50 when the current share price is way below that, so why would we bother to take up the rights. For most of us, presumably we wouldn't. We would just buy an extra 1, 10, 20 or 50k on market at the current price. That quantity is readily available on a daily basis so we are easily accommodated. But what about those investors with larger holdings (and that isn't me !). Let's say you are sitting on 1m shares. Try buying another 1m on market. It's going to take a while and the price will undoubtedly rise, possibly beyond $2.50. And that's just 1 investor. Let's assume there are many more than that, some of whom might welcome this opportunity to increase their holding at $2.50 without pushing the price up too much in the process. $2.50 may well be a very attractive price to them. In fact, there are many (smaller) holders who probably think that $2.50 is where the SP should be anyway. The fact that the current SP is less than that is perhaps more a reflection of the manipulation going on than the associated value. Why are there so many buy and sell orders for exactly the same small quantity of shares priced a cent of two apart. I can't believe there are suddenly 5 or 6 buyers for (say) 911 shares and miraculously there are the same number of sellers of 911 shares a cent or two apart. That is what is determining the SP, not necessarily value.
This is how I see it. Am I right ?