I remember reading about it some time ago and it is a plan to massively dilute the shareholdings by issuing as many new shares as they wish to existing holders at a significant discount.
So, say they get a takeover offer at $7 per share that they don't like and the shares are at $6.50. They could make a rights offer to holders of 3 for 1 at $5. That, 1) raises lots of dosh and 2) makes the company too expensive.
This is just from memory and I am open to corrections from anyone who can assist. My figures are an example only and in no way reflect anything EQN has suggested because they haven't suggested anything.
EQN Price at posting:
$5.83 Sentiment: Hold Disclosure: Held
