SK - me too, so what if we miss out, PMO has always let me back in. The rights issue is to buy something that is nearly has much as the current market cap. Just when I think I have seen it all, VWAP, convertible loans etc, pmo brings another scenario up.
What people don't understand (some do) is that there are no shareholders here. The people that have the debt own the company now.
Do you remember what happened when they last issued shares - on that last refinance? When they removed the convertible bond debt using the VWAP?
Nothing happened - absolutely nothing. The SP stayed the same on the day of issue and the market cap moved to reflect the new lower risk company. The BP acquisition will do nothing to the SP except for give it potential to rise much more, especially if oil geos up. The conversion of debt for shares will do nothing either. You will be looking at a new significantly de-risked PMO.
Rock, they did not disclose the position for months. I realise now why, nothing to do with hedging their debt exposure. Plan was to win on the short by driving sp to zero. They will then own the company and sell it off.
Bash, even ftse 100 companies (which i am mostly in) carry huge risk. Its all about waivers and headroom. Pmo can see this out if they get refinance. I will buy here but not yet, and it will be a decent transaction. I think there will be a lot of others like me.