I suppose any shareholder will be aghast at what abb did. They sold $200 million of their shares at a 15% discount to market. Now they say they will allow current shareholders to match that with a WHOOPING $5000 limit of shares at $9.30.
And they gave people a free day to get on. I am not sure it is possible to get on the register in one day - I am sure the mates of the board figured out how to do it - buy 1 share for cousin and daugher and uncle, etc. So they can then in a month buy $5000 at $9.30.
So the directors actually HURT their own share price.
I have no problem with the directors needing more capital to expand, but to do some secret deal at 15% discount which then destroys your share price, is terrible to any big, existing holder.
I suspect the share price will not get anywhere near where it was for a couple of years. The existing shareholder was damaged badly, in my opinion, by this move.
I would LOVE To hear the board explain what they did. But they already had their chance... and they only explained 'we did what we wanted and we dont care about existing holders.'
ABB Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
