spp oversubscribed., page-2

Hi Telco89,

By my calculations, then MUL will have the following number of shares (on a fully diluted basis) on issue:
1)
shares (@28/10) = 881M;
2)
options (@28/10) = 55M;
3)
convertible note = 70M (refer Findlay report);
4)
options to be issued (refer ASX-R 17/10) = 90M; and
5)
shares to be issued (refer ASX-R 17/10 and to your earlier posting) = 250M.

That makes for 1.346B shares, or a ~600M increase since 1/7/03. It is also ~450M more shares than what were used by Findlay in determining their pricing range back in late August.

That said, I would again ask the question - Why is it that the Company is going to issue 90M in options to the Directors which are largely already in the money and have no real hurdles attached to them other than time?

Every day, we are hearing about more and more companies having to either scrap or change their executive /director's option schemes.

Now perhaps that doesn't matter in the overall scheme of things, but it should matter when you consider the following:
1)
ongoing and continuing dilution; and
2)
directors benefitting at much lower prices than most shareholders will be asked to step up to (ie: Directors to exercise @8.75 and @10.5 between now and 2008, whereas the share price is currently @9.7, and by your own suggestion, the share price will now go to 14.5c).

Just looking at the actual number of shares on issue (ie: pre-dilution) - 881M vs 1.131B - you are expecting the MC in MUL to increase from $88M to $164M largely on the strength of a $15M capital raising? Or are you expecting something much more than this to occur and, if so, what?

Also, just as an aside, have you checked out some of New Skies' submissions to recent Government inquiries? They make for interesting reading. The URLs are, below:

1)
BROADBAND ADVISORY GROUP:
http://www.noie.gov.au/projects/framework/Priorities/BAG/BAG_Sub-New_Skies_Networks.pdf

2)
H of R WIRELESS BROADBAND:
http://www.aph.gov.au/house/committee/cita/Wbt/subs/sub059.pdf