Yes, underwriting a share issue can be justified as
long as the Government can appoint (a) member (s) to the Board.
That will be different than just having to
give AIR a loan.
They could claim this to be a matter of national
interest and would intimate that at a later date, they would dispose of the
interest and even make a profit.
They would dare the Opposition to counter that and
that is highly improbable.
When you said that " if you can buy
rights for 40 cents on the market, why pay more for the head shares ", well, I
am merely saying that immediately after such an
announcement, the shares could fall to 85- 80 cents.
If you think that they should fall further, well,
so be it! I may think that but I certainly won't put that
proposition to the forum!
I am really concerned with the Macros of the case,
not the details.
When the time comes for any decision, I'll make one
You could make things more interesting by
producing plan B, as outlined before: A
smaller cash issue!
My opinion is that as long AIR holds Ansett, one
can forget about those forecasts of profits. If the present situation were
allowed to continue for too long, then all bets must be off!
Anyway, if the situation is so blurred, I just
would take the loss and move on: AIRVA is not the only stock in Austr /
And if some investors can't do that, well, I wish
them luck; they will need it at this stage, perhaps.
How about that plan
B, please ?