guide for get out stage, page-10

Bluescope's under-writing predicament

The retail component of the Alumina offer was not under-written - a vital point of difference with Bluescope which paid Credit Suisse an underwriting fee to guarantee it got the $616 million through the door from retail investors.

Surely Bluescope couldn't reject any offers to buy additional from its own shareholders and instead sell some of the discounted shares to a Swiss bank? I, like every other person who has applied for additional Bluescope shares, have got an interest in the imminent decision and have written a detailed letter to the board going through all the arguments. We'll find out soon enough given the shares start trading next Tuesday.

With each tale of mounting windfall profits during this amazing bargain basement capital raising frenzy, more and more shareholders will hopefully wake up to the opportunities available. The Macquarie outcome was encouraging but we'll really gauge the level of investor awareness through Bluescope.

Looking forward, any shareholder in the likes of Santos, Adelaide Brighton, Seek, APN News & Media, Stockland, GPT or Pacific Brands should closely examine the current offers before them because they all close in the coming two weeks and are more than 15% in the money.

Why leave money on the table for someone else by letting it lapse? And if you're struggling for finance, phone a friend or just sell some of your existing shares on the market and buy them back through the offer at a lower price. That's what Bluescope Steel chairman Graham Kraehe did.

Taken from "Get rich quick - part 2
Stephen Mayne is a shareholder activist and publisher of The Mayne Report.
http://www.businessday.com.au/business/get-rich-quick--part-ii-20090603-bupg.html?page=4