abc in afr today, page-3

I would like to see a rights issue.

Dilution only occurs if you opt not to exercise your entitlement. In fact Lazard and Temasek would be better off if ABC undertook a rights issue and kept 100% of its US assets, than if it sold them at sub optimal prices.

Don't forget there is an equity component of the deal -- so not only is ABC potentially underselling to MS, MS is also picking up lots of cheap shares. This also dilutes existing holders. A rights issue would not.