As Oceanwide received permission to get to 19.99% on 19/11, and with dilution since then, would most of the underwriter shares be on-sold to Oceanwide? If sold at market prices (around $1.50 now), the underwriter would lose a lot of dough. If the sell @ a premium- say $2.00, then uw could come out close to evens, given fees, and options to keep. If they sell out @ $2.50- the rights price- they make quite a bit of dough. It all depends on what OW is prepared to pay, and what the underwriter is prepared to accept. Given it is such a large amount of shares/money involved, OW probably has the power to demand a discount, if the uw would accept it.
CDU Price at posting:
$1.49 Sentiment: None Disclosure: Not Held
