"For this reason (if I were to invest) I actually think its better to invest upfront in BEPPA and leave a modest amount for the rights (if sufficiently attractive)."
If we knew the deal was actually happening, then yes this would work, but I find the risk of the deal not happening too much to bear and therefore would not risk my capital in this manner.
"You think its best to invest a modest amount in BEPPA and leave a large amount for rights."
Well I am not going to tell anyone to do that, but yes that is what I have done. Far less risk that way. If BBI falls over, your losses are much less than what you consider above to be the way you would go.
"Melua thinks its best to hold nothing (risks and unknowns being too high) and muscle in on the professional placement."
The risks are indeed high, however I cannot see how you would get in on the placement without owning one of the three types of equity - ords, prefs or SPARCS. I cannot see myself brokers getting blocks of these rights to place unless they themselves enter into the underwriting deal. You would have to have some pretty serious broking connections to achieve this, which of course maybe melua has.
Also you could buy in post anncmt to get access, but any gains (or indeed losses) on buying the right security
BBI Price at posting:
4.9¢ Sentiment: None Disclosure: Held
