important info re disgraceful cap raise, page-4

I agree with the action being taken by Intelligent Investor on this one, it is an issue of control at a huge discount.

However ironically, if Frost manages to hold the underwriting of the rights issue, all this Takeover Panel action and negative publicity, is playing into the hands of Frost. As the price is now only just above the rights issue price, and likely to stay that way given the rights trading, the less the issue take up will be. Then as underwriter, Frost's desire to own way more than his entitlement, will be ensured.

Got to admire the wiley Woolley.

I, before this melee started, did not own a share. I am now buying plenty at a slight premium to the rights issue. I see it as a win / win from here. Either Frost is denied, good - share price will rise, or Frost succeeds in which case I feel sure that Woolley has a plan, and that plan cannot be to issue more equity (otherwise this would not be the issue for him to have such a big swing at). Who knows what his plan is, but it may not include Saunders and that too would add value.

Ironically, the instos should, as well as take the current Takeover panel action, be buying as many of the rights as possible, to reduce the issue shortfall. All they need do is sit in the market at 5 cents for the rights, and any shareholder not taking up the offer, would be mad not to sell rights for 5 cents. This would in turn deny Frost more than his fair share ( and he can't really buy more on market as he is at the 20% limit).

All i can say is don't despair and, in my view, you should take up your rights for the same reasons as I am buying into RCU.