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Capital have exercised an option(of an undefined sort) to buy a further 8mill shares , on which one must assume they intend to take up the rights. It would be no surprise if GS do the same over the 130mill plus shares for which they have an option. Worth watching the RNS's to see which way the grown ups are thinking.

Patanj The IAG cash raise was at 0.92 euros, at current exchange rates that about 83p so still >10% above the RI rate.

GS have acquired the rights to acquire another 6mill shares approx. from another holder. It adds to a significant holding now roughly 160 mill shares worth around £280-290 mill at todays prices. That makes them nearly the largest single holder along with Capital(Los Angeles) and Causeway(Dublin) who, both also hold 7-8%.

Key sentence from the RNS

"The Bond Offering is expected to close on 21 October 2020 and the proceeds will be escrowed and will be available to Rolls-Royce upon SUCCESSFUL (my caps) completion of its Rights Issue.

Any chance of calling him/her Casaj to distinguish from my thoughtful , informative and constructive input!!!!!!

Patanj see

https://www.hl.co.uk/shares/corporate-bonds-gilts/bond-prices/gbp-bonds

The rates RR are going to pay are not far from these bonds in issue to major companies.

The British company (L:RR) is set to raise 750 million euros ($880.65 million)from a bond due Feb 2026 that will pay a coupon of 4.625%; 545 million pounds from a bond due Oct 2027 that will pay a coupon of 5.75%; and $1 billion from another bond, also due Oct 2027, that will pay a coupon of 5.75%, according to the memo.

All bonds are priced at the lower end of earlier price guidance, with the deal larger than the 1.5 billion pounds originally marketed.

Confirming the news in the Guardian this morning, indeed slightly better terms Despite the prophets of doom here , it looks as though the RI/debt raise will succeed.

Schlemiel While I had no takers for the conundrum I offered in my 12.13 post , I see you recognise the same issue .In normal circs a formal offer to buy would drive the targets ( in this case Cornerstone) SP up to or even beyond the offer price, If only for the reason that buying below and selling at the offer price offers a quick risk free profit. That hasn't happened and can only be(IMV) for one of a few reasons, either, the stock is very tightly held by people who believe a better offer will come along, or Management have as you say, come up with a cunning plan , though legally this has to be announced and so far as I am a aware has not been ,or holders just don't want to hold a sterling denominated stock even at a sharp premium(more than enough in all but the smallest holdings to be worth more than FX conversion costs).
Cornerstone are according to the FT worth about CAN$ 190 mill and 60-65% of the shares are free float (ie not in the hands of management/major owners)and the only other possibility is that significant acceptances have been offered privately .AIUI SOLG will be required to issue an RNS tomorrow , or as soon after as is practical with the results of the offer.

As a relative newcomer here I'm looking for an explanation. The SOLG offer for cornerstone is 11 shares for 1, the current SP is ~39p almost double the price when the offer was published , therefore now about £4.30 per cornerstone share(about CAN $7.40) BUT despite a near equivalent rise in the cornerstone price, the quoted price on the Canadian exchange is still less than the offer price at CAN$5.90. That the price of cornerstone share has risen but is still ~25% below the offer price suggest that most holders of the stock aren't selling, what am I missing?

Assuming the guardian piece is accurate it offers three pieces of highly significant news.
First the coupon on the debt is manageable , around 5-6% illustrates a confidence in the lenders that RR will be able to afford the payments.
Second that the likely sum will be doubled, again illustrating a confidence on behalf of the lenders, or maybe that more entities are willing to lend. And :
third that we now know the RI will be heavily subscribed , those institutions who hold most of the stock will have tacitly told lenders that they are in for all of their rights and maybe willing to acquire more.
If we add this to the recent GS positioning(and remember they are underwriting so they have a pretty good handle on how the RI is going)which is a vote of confidence in the short-term survival of RR and it's medium term future.
The RI and the debt issue are like the proverbial two drunks propping each other up , if one falls over they both do,. it looks like both are staying(near)vertical.

GS holding of shares FELL by ~3mill yesterday so no, not their buy.

The RNS stipulates that GS have control over 7.3% of the voting rights , in other words they control via CFD's or other formal contractual obligations about 150 mill. RR shares, worth at the moment a little shy of £300 mill. That is a positive holding .Because of the volatility of the SP they have sold shares and bought options , in one form or another . The fact is that they have BOUGHT , implying a belief in the rise in the notional SP post the rights issue. IT IS a positive signal. Their outlay is probably only 2/3% of the cash value of those shares but that is how investment banks and hedge funds operate . The other side of the deal is probably Capital , a west coast investment house , some of whose staff I meet at a conference in LA very early this year. They hold a substantial quantity of RR stock and are taking a fee for allowing GS to buy the stock from them at a PREMIUM at, or before, some agreed point in the future. If the deal takes place both sides win, that's how it works.

The other Casa You keep repeating your July calls here and you were right , though your timing was bit off. As is my habit for anybody who professes expertise in calling prices I do my research . here's the rest of your July record.
6 july VAST SP then 0.25p Your call " next resistance 0.28 then 0.40...." SP now 0.17
29 july AML SP then 56p your call "expect to see 70-100 in 1-2 months max..." SP now 50p
June was no better

23 june BOIL SP then 0.145 your call "should hit 0.5-1.0 by month end ..." SP now 0.08p

I award you a score of 1 out of 4 even random should get 2 out of 4
You join the lengthening list of people who a only tell us(repeatedly) about their occasional "hits" ,not their frequent "misses" and also seem unable to recognise that your posts are all available for examination.
Why not do us all a favour and STFup.

Jlex not fully accurate .The SP WILL adjust on the 28th. At the moment the shares trade with a rights offer attached , that offer will no longer be there for buyers after "ex-rights" day so the SP will CERTAINLY fall on the morning of the 28th. On that day holders will see two separate entries on their account, one is the RR share at about 60 /70p the other(probably RRN) is the nil paid rights worth(per share) the difference between the SP and 32p.

..... In the large moves in this stock in recent days. Because of the impending RI and the high discount , the SP is now essentially (and is acting like) a short-dated buy option. As has been pointed out here before by others as well as myself , sharp swings in the current SP have a much smaller effect on the "post rights" SP. This may well get worse ie more volatile not necessarily a lower price as ex-rights day approaches, there is a complex mathematical formula for the Gamma of an option which I won't bore you with, but it essentially reflects that the value of the option (in this case the tradeable nil paid rights, decays very sharply to ZERO on ex -rights day when as most of us know the SP will itself fall by over 50%.

Guys It's not my thing 'cos I don't panic about the SP on a minute by minute or even week by week basis , BUT if you look at after the close trades you need to distinguish between LATE trades and LATE REPORTED trades. Tonight's as an example the million pound trade was an NPFT that is a "non price forming transaction" which most probably judging by the price,means it was effected earlier today and was a private deal directly between two entities not via the exchange. It is required to be reported under SE rules but did not affect the SP at the time or later.

Theice WADR I think the naivety is yours. There are no major companies I know where the remuneration plan for senior management does not depend on profitability in the short or longer term. True, there are frictions between competitors but when the chips are down , managers will bury their personal feelings to achieve a mutually beneficial compromise. The elements you enumerate all lead , in the end, to the bottom line. The same is true for investment bankers, lawyers......

Quady I see that we have differing opinions as to the likely outcome of this story and I am aware that you have been following this company for a considerable length of time, on that basis I fully accept that you can continue to come up with details as to why your expected outcome is more probable than mine. I defer to your specialist knowledge but respectfully suggest that you may be a little to close to the subject to see the full picture . The analogy I sometimes use is that to see what lies on the road ahead a telescope is more use than a microscope.

Quady I very much doubt that to be true , the key driver of the build will be access to funds, SOLG have far more hoops to jump through (and may trip at any one of them) than eg BHP to get those funds .

Stocky, SOLG is a minnow swimming in a sea of sharks - the minnow doesn't get to dictate the terms on which it is eaten.