The cap raising by 23/2/10 is if they find an acquisition that...

The cap raising by 23/2/10 is if they find an acquisition that KEY feels would be worth diluting the register for.

It is strange in my view as KEY's own argument of needing to be able to move quickly thus ruling out a rights issue is disproven by the time it took to acquire the UK assets. It also resulted in the share price being capped for fear of massive dilution occurring in the short term. This limits the amount the can raise and makes it harder to find an acquisition that would justify such a dilution of the share register.

If the placement does not eventuate then expect to see a rise in the share price after 23/2/10 as the cap is removed. I'm a betting man and have punted on no raising occurring in the next week and a bit.