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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (25914)	2/10/1998 2:28:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Chris, You are partially right. However, there is one other reason to use rights, and that is to raise equity capital without using an investment banker, or by using a cheap investment banker. For example, when companies have rights offering that allow you to purchase an equity or equity equivalent (convert, warrant, bond with warrants, etc.), it can be used for either reason. What is so crazy is that these things are almost never a good deal for shareholders on a cost per share of ownership basis. Yet, because they think they are getting something for nothing, these deals are nearly always approved in votes. MB