Hi All,
I don't believe options are the total answer but could be part of the answer for a capital raising. I believe the use of the instruments available will require vision and may I suggest RC has that quality in spades.
One use of options could be the distribution of options that are substantially out of the money as a defence from the acceptance by SH's of low ball take over proposals. An example might be options with a $1 strike price with about 18 months expiry period. These options would probably be considered worthless in a take over offer but maybe of value to SH's at the end of the expiry period. Therefore, SH's maybe less inclined to accept a take over because of issued options. I'm sure RC would have considered this use of options and will have reasons to either rule this option in or out.
In my opinion we do not have to worry. What we need to do is carefully listen to and support OUR management. They rightly have more information than we have and they are obliged to work in our best interest.
DYOR
Also all the best for the holiday season!
Cheers
Stoops
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