Hope you don't mind me asking a question of those HCers following IIF. The unit price is certainly appealing - but hard for me to get a grip on the strategic issues.
I've heard that ING has a big holding in IIF (correct me if I am wrong). Do any of you know if it would be possible for ING to (if they wanted to - not suggesting this will happen, or that it is likely, or that there are any rumours) underwrite a rights issue? The reason that I ask is that there are mandatory and creeping takeover rules that may preclude ING from doing this.
Good News: If ING cannot easily do this - as it makes it less likely that any dilutive Rights Issue would occur, as ING would be involved in self harm, as they could not underwrite it and get cheap units, and transfer equity unto themselves (or their owner). The management would be less likely to have a vested interest in this approach (from my cynical point of view) in this case.
Bad News: If they can do it - ING may be able to benefit from some cheeky action. Not saying that they would take advantage.
I'm sure an IIF poster knows the answer. I have a feeling it is the good news for IIF holders, but not sure.
IIF Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
