qbe - spp, page-24

The scale method is fair enough, no complaints from me, except that the method should be disclosed up front so that investors can make a sensible decision. It really is not much to ask and would give the company greater credibility given that the method this time is different to last time.

Un marketable parcels should just not be offered. You either get 500 bucks worth, or you get nothing. Once again, this would be easy to disclose upfront so that investors can make an informed decision.

It is not the scale back method that is unfair. It is the fact that they have chosen a method that is different to their historical choices and that no information on how the scale back would work is given up front for people to make an informed decision.

Personally, it has little effect on me either way, but I do not think that this reflects all that greatly on QBE. Yes the price can move in the offer period, but the institutional one was already oversubscribed, so not much chance this one would have been any different. QBE certainly had information at hand to provide better decision making info to the existing retail investors. In the interest of transparency, they really should have, as it has obviously left quite a few with a bad taste.