new issue details, page-4

Yep, and this latest "clarification" is no doubt due to a slap over the wrists from ASIC. Their original, and very misleading wording was:....

"The Rights Issue Price of 28
cents per New Ordinary Share represents a premium of approximately 44 per cent. to the closing price per
Existing Ordinary Share of 19.5 cents on 27 February 2007, the last business day before the announcement
of the Rights Issue"

The new issue may tempt a few buyers to get onto the books (as and when the entitlement date is announced) to get a few shares, but those and existing holders who take up the issue will most likely be looking for a quick profit.

The best ITE could do is to announce (if they can) details on their possible merger ahead of the new issue date.