sdmartin 10You missed the whole issue, that is that this new...

sdmartin 10
You missed the whole issue, that is that this new issue was far far far to generous to the new, and outside institutional investors that they look at 66% paper profits. This enormous gain has come at the expense of exisiting shareholders. Thus the higher the return on the new issue price the worse it is for pre issue shareholders (and I am in that camp). If the new issue was entirely to shareholders then it would not matter as whatever loss on existing shares could be picked up on the new shares ( Wesfarmers did a well structured raising at $13.50, large discount at the time but was in the main an entitlement issue, and what's more if you did not take up your entitlement they sold your shares in a bookbuild and gave you the excess over the $13.50 issue price, can't get any fairer than that).

To make matters worse they have also suspended distributions on the hybrids ( and these are not cumulative) so clearly despite the very low gearing levels, the banks still control this puppy! Failure to meet the coupon on a hybrids issue is damaging to a company's reputation.

I have today sold my shares and the hybrids (ELDPA).

I will be writing to the company to express my views on their ineptitude.