warrants issuer push hdr lower, am i right?, page-5

re: meerkat -warrants issuer push hdr lower, am i Here the details about HDR Warrants in December:

HDRIMO, call warrant

Issuer: Macquarie Bank
Commenced Date: 26 Oct 2004
Expiry: 22 Dec 2005
Exercise Level: $1.60
Warrants issued: 10 millions

The fact:

1) If HDR sp drops below 1.60, Macquarie bank will get maximum profits from the warrants.
2) Macquarie bank took 10% of WPL holdings, paid 1.76 – AFR mentioned that.
3) TOP 20 share holdings still excludes Macquarie bank which bought 6.8 millions share….
4) HDR closed @ 2.13 when the warrants commenced on 26 OCT last year.

If HDR, like ROC, stands above 2.7x, I think Macquarie bank would loose money because excise price is different when it’s commenced.

I don’t think the bank only happy with transaction fee, the price is the key … because the issuer will be responsible when the warrants expired.

That’s why HDR performs strangely …