Hi,I have some questions that I would really like answered....

Hi,
I have some questions that I would really like answered. Hopefully someone will be kind enough to help. I’m a first time trader and expect to purchase some iinet shares in the next couple of days but I was wondering, firstly what happens to your shares if another company does take over iinet? And how is it possible that when iinet needed to sell shares to Powertel Ltd it just simply “created” more shares? Doesn’t that theoretically lower the “value” of all the other shares in the company as there is now more “pieces” of it?

Thanks