I have taken some understandable hits on my point that the underwriters (presumably Morgan Stanley?) will be "sweating". And I thank my critics. HOWEVER:
Sure they get their fees etc BUT they have a REPUTATION to protect! Why would they want to infuriate existing shareholders--the companies they run the new equity book for do NOT want that. Short term fee maximisation is one thing; getting the equity issue price near-right is another. They have done a poor job at selling the virtues of the new Jaya acquisition. The buy-in price for the Jaya assets looks high. I maintain my original position: the underwriters will not like what they see so far.
MRM Price at posting:
$2.39 Sentiment: Hold Disclosure: Held
