Hi Michael,
I've been reading with interest your articles on WES for the past few days, and thought I'd provide some extra information, if I may.
When are companies going to take retail shareholders seriously?
They want our support, but then continue to give discounts to institutions for the shares they want - at the expense of "Mums and Dads"
Case in point: Wesfarmers.
The rights issue is great - everyone who wants to support the company can - well done!
However, by my maths, a 3 for 7 rights offer means the following:
If I own 7 shares, at $16.83 (last close), less the 50 cent proposed dividend = $16.33 per share (7 shares = $114.31), I take up the 3 shares at $13.50 ($40.50), total value for 10 shares = $154.81 ($15.48 per share).
Why then are two managed funds getting to buy shares at $14.25? Can I please buy extra at $14.25?
Why not make the rights issue 4 for 7 or whatever the ratio is required to make it fair for all?
David
