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You are entitled .

Ratty There are 18 McDonalds in Istanbul, you haven't been looking, or just maybe you're lying again?

Ratty OK I've got it now - the answer is fantasist!

Ratty you really should NOT offer advice. As I illustrated in a recent post you appeared to be a stock market novice only a few months ago and yet now you tell us you are a sufficiently sophisticated investor to trade highly leveraged, highly speculative shorts. I repeat you are either a liar or a fantasist , or perhaps just a fool, whichever it is, Like all rodents, you should come with a health warning .

No, they have reduced their overall stake by 1.5%, roughly equivalent to 30mill shares. They are banking a profit of £ several mill. depending upon the prices they bough or optioned at.

Ratty would you give me a little lesson on how you reduce your average in a triple leveraged short as the SP increases without adding to your stake and your risk?

Better watch out for the lightning!!!

Hi Poleaxe responding to your 12.10 post . While I agree with much of what you say in regard to the implications of the pricing of a RI from the investors point of view , I fear you misunderstand how rights issues are priced and why.
The primary driver of a RI issue is the price/ratio demanded by the underwriters, as I am sure you know, they guarantee to take up ALL unsold shares at expiry date. Their aim is to have that number equal to zero, therefore they canvas major holders to ascertain what cash sum and level of discount they will tolerate and still take up their full allocation, based on that they screw down the issuing company to that figure or an even greater discount. They also balance the reputational damage to the issuer with the financial damage to themselves if they are left with large volumes of shares which the market has clearly illustrated they don't want.
They then err on the side of caution , after all their own bottom line is the priority. I have no doubt this RI went through that process, indeed it was clear that for RR to get the issue underwritten at all seems to have been in doubt as GS( a shrewd ploy to earn further revenue by the trading subsequent "bounce"?) and others scaled down their commitment.
The resultant high discount appears to have given an unanticipated fillip( by all except GS?) to the RR share price , short term pain long term gain may be the outcome for RR and its shareholders.

Ancient Chinese proverb "You don't stop running just because you think the Tiger will catch you".......Well actually I just made that up!

I have no wish to intrude in to private squabbles , but to I do want put the "going in to production" argument in to perspective. If we assume around $3billion dollars needed(minimum) , and a debt coupon of say 5% ( and it may well be more) with a term of 7 years, Then SOLG will need to repay $150 in interest and $450 mill in capital repayments EVERY YEAR to clear the debt, the full cost over the 7 year period is close to or above $4 bill.
I made the same sort of arguments on the SXX board and look what happened there.
Whether or not SOLG do go in to production is not a decision for the SOLG investors or even the board , it is a decision to be made in the boardrooms of banks, hedge funds , mining financiers.... and for my part as a cautious investor my stake here is on the assumption that Ecuadors gold and copper will be extracted by a much larger company than SOLG

It's a failure to understand the fundamental principle of a business, you price your goods at the price which maximise profit, too high and volumes fall, to low and margins fall. My local supermarket sells goods at a higher price than their own hypermarket a few miles away , but they know ,and I understand, that the higher price locally saves me a car journey and money and time and thus is a worthwhile compromise on some occasions.
The media are either too stupid or too "click hungry" to understand one of the worlds most obvious and widespread trade-offs.

The market cap is simply the number of shares in issue X the share price. The number of shares post rights will be a little in excess of 8bill.At a presumed ex-rights SP of about 70p, that gives market cap. of £5.6bill as against the current value of ~£4.3 bill. That reflects mostly the RI , the additional debt appears in a number called the enterprise value(EV) which is , in theory, the cost a bidder would incur in a takeover.

Sorry share.... I have no personal grudge against ratty or anyone else BUT they do these boards a great disservice by repeating ad nauseam , inaccurate information and unreliable recommendations based on little or no understanding. There are obviously many who come here looking for info. they cannot find for themselves and/or a rational view of the circumstances , options and outcomes open to them. Ratty and his ilk obscure the useful in a cloud of rubbish, may well convince others in to foolish and costly actions by a semblance of knowledge and an implied expertise.
I come here to learn from others who know more than me, to offer soundly based input when I can and to correct patent inaccuracies. Calling out ratty and others like him is an antidote to their nonsense spouted endlessly.

Ratty you must be a very fast learner, now an expert in rights issues , shorting, and bad mouthing others ......
And yet .......
on 10 june on the KOD board you said "Nope still don't get it, care to break it down in LAYMAN'S (your word)terms please?
on 25 june on the DLAR board you didn't know how an open offer worked you said "Anyone know how I take advantage of these...?
Not much progress by July
on 9 July on the SONG board "If I take up the offer of(SONG C class shareson sale at 100p) can I sell straight away for a profit ?unaware that the listed SONG shares were A class(on sale at 120p) ie different!!!

BUT now, in October you are an expert with high value highly leveraged shorts, a comprehensive understanding of the timetable and maths of a rights issue and a cunning plan to make a killing!I hope for your sake you're a fantasist or a liar 'cos at least that won't cost you money.

Just to clarify Civil aerospace, ie payment for flying hours and maintenance of existing engines and engine sales constituted almost half of all of RR's revenue, as per the last half year results , though in normal times it would be more like 60-65% , that fall and a very substantial(non-recurring) accounting adjustment to cater for sterling dollar hedges which went sour as a result of sharply lower dollar revenues was the primary reason for the losses in the last half year .

While the terms of the rights issue are fixed , the discount rises as the SP rises and thus the prospective benefit to holders increases. This is not directly related to the RI , rather it is to the fact that the market perception of the company's prospects rises(from grim to merely poor!)as the debt issue is apparently positively resolved, the RI take up looks to be positive and the likelihood of bankruptcy recedes.

The definitive rules on UK takeovers are here

https://www.thetakeoverpanel.org.uk/wp-content/uploads/2008/11/code.pdf?v=7Nov2019

BUT be aware it runs to 425 pages, a briefer and more understandable version is here, courtesy of Slaughter and May

file:///C:/Users/PC/Downloads/A_Guide_to_Takeovers_in_the_United_Kingdom_1268.pdf

the relevant pages are 44 et seq

Have fun!

NO, Rights are fixed at 32p.

The key to Cornerstones bid defence is this sentence from the reference posted by smickster earlier:

" Very high management and insider ownership ensures ultimate alignment of shareholder
interests." ,translation - you have not enough shares to force the board to endorse a deal!!
This suggests that while a number of smaller holders would no doubt have taken a bid price of double cornerstone's price at the time of the offer, they were no where nearing the threshold to force the board to accept it.

This is worth repeating for those expecting to make easy profits on the share price post rights. ALL positions which are equity related , ie direct holdings, shorts by whatever means, eg CFD's ,spread bets etc WILL BE ADJUSTED to take account of the mathematical implications of the rights. That means as of the current SP as I write(209p)the new SP post rights will be deemed to be about 72p. Your position is NEUTRAL at that price.