Hi
I believe it is important to consider the funding requirements now. If we sit back and wait I am not so sure that existing small shareholders will receive any meaningful opportunity to participate in the planned capital raising !
Woodside would have the opportunity to add to their position and could subscribe for any of the issue not picked up by other existing shareholders a win win situation. This would keep Harman in the picture long term as well as keeping small shareholders happy and allowing HDR's suitor to increase their % stake.
Unless shareholders ensure that a rights issue is actively pursued, renouncable or non renouncable with or without attached option as per the generous offer to the directors. We will possibly find that existing directors maintain that there is not enough time to raise capital in this way and the " sophisticated investors " will again clean up. The existing loyal smaller shareholders will be lucky if they get the opportunity to participate in a share purchase plan for the usual up to $4999 allotment.
It would be nice to believe that the small share holder were fairly represented. Not to denigrate the efforts of Burns, Ellyard, Spencer or Raven however in the grim reality of business ethics today we must actively pursue any avenues that offer all share holders, including the smaller share holders equal opportunities.
Perhaps a small shareholder representative elected to the board would ensure equal rights!!!
As mentioned in another thread it would be interesting to establish the number of shares held by Hot Copper subscribers and if we would have any effect in the outcome in any motions.
Does anyone know the conditions under the which small shareholders can call for an extraordinary meeting to demand that a rights issue is actively pursued ???
cheers $
HDR
hardman resources limited
