Member Info for Bonz1957

Read my previous posts. It is down because the share has gone 'ex-rights'. So for every three shares you held on friday, you now have 3 shares at approx half the price, PLUS the right to buy 7 new shares at 105p. These new share rights are called 'Nil Paid' because they have not yet been paid for. But as the shares are now trading at 170p and you have the option to buy new shares at 105p then these nil-paids have a value of 65p. They are an entity in their own right, they have a code of NEXN, and can be bought and sold. If you do the sums you will find that 7x 65p and 3 x 170p is roughly where you were on friday, less alittl;e as the market has gone down today.

Does anyone have any thoughts on the impact on Nat Exp in having the Liverpool Street franchise taken away from them on Thursday, and the possible ramifications on the Rights issue. How will this impact on earnigs so soon after being sacked from the Kings Cross franchise? This rights issue seems to be a lot harder to decide on than the one from Lloyds.

National Express Group PLC ("National Express" or the "Company") announces that at the Extraordinary General Meeting held today in relation to its recently announced Rights Issue, both of the Resolutions set out in the Notice of EGM contained in the Prospectus relating to the Rights Issue, which was published by the Company on 11 November 2009, were duly passed without amendment. The passing of the Resolutions will enable the Company to proceed with the fully underwritten Rights Issue to raise net proceeds of approximately £360 million. Accordingly, subject to certain exceptions, Provisional Allotment Letters will be sent today to Qualifying Non-CREST Shareholders on the register as at close of business on 24 November 2009, and CREST stock accounts are expected to be credited with Nil Paid Rights in respect of New Ordinary Shares at 8.00 a.m. on 30 November 2009. At todays closing price of 334.8, the 'ex-rights' should open on monday at around 173.9 with the 'nil-paids' being quoted around the 68.9p mark. Anyone any views on whether this one is worth taking up? I'm going to take all of my Lloyds rights, but not sure about this one. Have they lost too many rail franchises to be a good bet? I wonder how many people will be all over this board on monday with absolutely no idea why their shares have fallen by 48%?? DYOR as always and best of luck all.

If you sold your shares on the 30th you would be selling at the lower ex-rights price, which could be in the region of £1.75 if the share price is around todays level. I don't think there would be anything to stop you taking up your rights and selling them after the 15th. But what would be the point? You would achieve the same value by selling your existing shares now without the extra dealing charges and having to fund the rights. That is only my view on the matter, you would of course have to DYOR. But I don't see there is anything extra to be gained by doing what you suggested. Of course the price could fluctuate in your favour and make you look like a genius. But, it could also move against you. As ever we will all be wiser after the event. Best of luck.

Who's the buffoon now? Hope you didn't sell out at the price that was on offer as of your last message. Share ticking up nicely now there are two more potential bidders on the scene. I shall be spending my extra profit on more lovely bars of CDM.

Only you can decide, after doing your own research, whether it is right for you to participate in the rights issue. If you dont take them up it is possible to sell them although not certain what you would get for them, there may be a market for them if there is enough demand. As the rights issue is 7 new shares @ £1.05 for every three old shares which are currently worth £3.35, the value of the shares you hold will almost certainly fall. To break even they would need to be worth around the £1.75 value. It is possible that what you would get for selling the rights to the seven new shares would go some way to compensating you for the fall in the three old shares you hold. We will all know more as we get closer to 14th Dec.

The rights issue was announced on 11/11, and the record date - the date on which you have to hold shares and be on the share register - will be by close of business on 24/11. So if you want to buy shares in the rights issue that is the date that you need to be on the register, although it does not oblige you to take up your rights should you decide against it. Be aware that it will not be good enough just to buy shares on that day, you will need to buy a few days in advance to allow time for settlement and to appear on the register. The rights issue is 7 new shares at £1.05 for every 3 old shares that you hold. At todays price of £3.35 that would imply a future price would need to be above £1.75 for the rights issue to worth taking up. Hope this helps.