Ann: Becoming a substantial holder, page-10

Well exactly, gee.

And the share price can be expected to continue to fall toward the issue price during the rights issue period under the pressure of this rational behaviour. No-one knows exactly what price it will trade at in the future - it may even trade below 1.47 for a time if selling exceeds buying, which could happen even after the issue is completed.

Further, this arbitrage depends what price you paid for your existing holding. Some paid 21c. They would be nuts to sell and create a CGT liability just to exchange shares at 1.60 for shares at 1.47.

Ash