If an American corporation announced a rights offering, its stockholders and the broader market would be worried. It would have nothing to do with dilution, coercion or short-selling risks. They would simply be worried that the company had no other avenues to raise capital.
Boards and investment banks have come under fire for putting retail ‐ investors and existing shareholders at a disadvantage in their rush to raise capital over the past two years, after a leading governance firm claimed that many placements favoured particular ...
COMPANIES should be forced to disclose the big winners from capital raisings after a report found nearly half of the money raised in the aftermath of the financial crisis did not give existing shareholders the chance to take part.
INVESTMENT banks faced numerous potential conflicts of interest as they advised companies on repairing their balance sheets during the global financial crisis, enjoying a "boutiful" time as they sucked up nearly $2 billion in fees.
CORPORATE Australia is congenitally unable to clean up its act. The prime regulator is institutionally incapable of understanding the inherent corruption. So there is only one course: share placements must be banned by specific legislation.
The Australian Securities Exchange is not in the habit of making foolish statements, so its suggestion that boards should have a free hand to determine a company’s ownership is presumably an aberration.