My 14c worth.Macquarie, UBS and Lazard are underwriting the...

My 14c worth.

Macquarie, UBS and Lazard are underwriting the issue at 14c. They have had the opportunity to perform due diligence so know more than the rest of us.

Allowing current shareholders to oversubscribe their rights would have been an easy way to reduce their potential risk of taking shares via the underwriting agreement.

They have chosen not to do so, which in my view means that they are happy to take more shares at 14c.

Therefore they must see a good risk/return profile from taking shares at that price. For Lazard in particular given it's cornerstone stake, I would view that as they must see 50% upside in the medium term (once financial stability is restored and supplier and customer trust in financial capability is rebuilt).

FWIW my position is far too many bought at far too high a price, but intending to subscribe for my rights in full.