Ann: Trading Halt , page-38

jake said:

"i am trying to remember a similar situation - but cannot. Such situation being where a coy has made a discounted rights issue, when an "offer" is being proposed at a far, far higher price?"
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jake, try EOC, which was fairly recent. Step1. Company said they had unsolicited approaches. Step 2. They then said they had a specific approach @ 60c. Step 3. They then raised capital @ 40c. Current SP is about 46.5c.

I think these companies do this in case an offer falls through, because then the SP would fall back to the pre-offer price (or pre-speculation price, in WCL's case), and then they could raise less cash. Sometimes when they raise capital post-indicative, non-binding thing, the company says it will have a "strengthened position in which to negotiate" or some such thing. Raising in the middle of a potential offer is probably not a bad strategy, because people don't want to sell their shares and "miss out" on something big. Hard one. Interesting one.