Wagon Share Discussion Threads

[bipos] 03/7/2008 07:44

can any one comfirm that the share's are aready ex-rights?

[topvest] 02/7/2008 20:23

Who knows. I suspect the delay is due to something on the sale and leaseback. Probably a minor technical issue, but we will see. No rights issue...this will go bust, so there is no point shareholders moaning!

[nicedude1976] 02/7/2008 16:18

When will the new subscritption using the rights take place?

[exile] 02/7/2008 15:45

I think the answer is you have to sell 10 for every 1 you own but as the price is below the rights issue you make roughly 25%???? can someone clarify this please?

[exile] 02/7/2008 14:41

If you are long via a CFD you get the rights to 10 shares for every 1 you hold in your account. If you are short via CFD's what happens??? simple question but I can't get my head around it.With the share price below the rights it is confusing.

[hybrid07] 02/7/2008 13:02

IMO the reason for the delay is to allow the authorities to investigate the complains about the RI

[tr1] 02/7/2008 10:20

All the rights will be moped up at 4p by WR, so the current share price could be worth a punt.

[deanroberthunt] 02/7/2008 08:55

surely the rights are screwed....i reckon thats why the delay imo....why would one buy at 4p, when you can buy as many as you like for ~3.25p.....almost 30% less (dummy trade)

[topvest] 01/7/2008 21:49

Rights issue delayed temporarily. You would have thought they could at least ge this away on time without screwing-up. Doesn't inspire confidence does it!

[hybrid07] 01/7/2008 13:01

Sorry, wrong thread

[deanroberthunt] 30/6/2008 20:31

why take up your rights when you can buy as many as you like for 3.7p...it beggars belief.

[hybrid07] 30/6/2008 18:59

Bench, did you buy any before the ex-rights date?

I guess the thing to do is buy a few below 4p now if you can, then use the rights if the share price goes much above 4p before the rights expire!!

[bench2] 30/6/2008 18:52

Excellent post hybrid many thanks. I bought a few today at 3.75p !

[hybrid07] 30/6/2008 18:51

Does anyone know what happened today at the EGM apart from the fact that all resolutions were passed?

[hybrid07] 30/6/2008 18:42

Wagon to brush aside protest by investors over its rights issue

By Michael Kavanagh

Published: June 30 2008 03:00 | Last updated: June 30 2008 03:00

Wagon is expected to sweep aside criticism from small retail investors at its annual meeting today over its 10-for-one rights issue and to push ahead with its refinancing plan.

The car parts maker has seen its share price fall from 263p to less than 4p over two years. The rights issue announcement on June 4 prompted a fall that day from 14½p to 6p.

Wilbur Ross, the US leveraged buy-out specialist dubbed the King of Bankruptcy, is underwriting the issue, priced at 4p. Mr Ross holds 15 per cent of Wagon's stock.

The company, which supplies components for Ford, Peugeot, Citroen, Renault, Fiat, Audi and Mercedes Benz, has also attracted the interest of Philip Falcone, the US hedge fund manager nicknamed Midas of Misery, who has a 10 per cent stake through Harbinger Capital Partners.

Another US hedge fund, Contrarian Capital Managment, also has 15 per cent of Wagon.

Wagon needs the £49m of new equity from the rights issue to provide capital to back contract wins with Honeywell, Porsche and Iveco, the truck group.

News of the rights issue coincided with results that saw pre-tax losses fall from £99m to £1.9m in the year to March following new contract wins. However, financing costs rose from £11m to £13.3m as net debt rose to £107m. The company has renegotiated €155m (£122m) of banking facilities.

Adrian Howard-Jones, a long-term investor in Wagon, has criticised the company for, in effect, forcing a dilution of smaller shareholders' interests.

He says the 10-for-one ratio goes far beyond the norm. With his stock worth £1,400, he needs to spend a further £14,000 to maintain his stake.

Simon Pepper, another investor in Wagon, said: "Smaller investors appear to have been disadvantaged. For institutional investors to take up the rights is small beans. But small investors appear to be poorly treated."

Nevertheless, Mr Pepper, who recently bought 250,000 Wagon shares at 14½p, doubled his holding on Friday when the shares fell below 4p, in the hope of a long-term recovery in Wagon shares.

Mr Howard-Jones has taken his complaints to the Financial Services Authority and the UK Listings Authority.

The rights issue, handled by Hoare Govett, required the approval of the Takeover Panel as it could leave Mr Ross's companies with majority control of Wagon.

Wagon said this weekend: "We understand the frustrations held by shareholders concerning the value of shares to date. But it's absolutely the right way forward for the company."

It said the issue would end the uncertainty over the company's finances, which was the reason for the falling share price.

Copyright The Financial Times Limited 2008

[hybrid07] 29/6/2008 20:40

Probably will be a poor take up. However, I assume the issue price was set deliberately low, therefore share price should rebound above 4p. AGM tomorrow. Hopefully investors will be reassured by that they hear. The market tends to be spooked by this kind of thing and I am assuming that share price will rise after it is all over.

[topdoc] 29/6/2008 16:32

So what do people think the scenario is likely to be after the RI is completed.a) Poor take up b)reasonable take up.

[topdoc] 27/6/2008 16:39

Whos going to take up RI when you can buy at 375

[killieboy] 27/6/2008 11:44

You can buy on the market at 4p now - the share price is now being held down so that Mr Ross can snap this one up to add to his auto stocks.

[topvest] 26/6/2008 22:13

I will take some. 4p is cheap medium term.

[deanroberthunt] 26/6/2008 19:55

oh dear!

rights at 4p anyone.....lol

[napoleon 14th] 26/6/2008 14:25

A chancelor with B A L Z would tax shorting at market point (via the broker).
High tax, eg 75% & >, would disincentivise the game.
Just dreaming.......

[nicedude1976] 26/6/2008 09:37

Not a best idea to short such a cheap share

[topvest] 25/6/2008 21:28

A hedge fund shorting - I think all short positions over 0.25% should be disclosed and not just when there is a rights issue. Shorting is causing problems in the market. Lets hope this shorter gets his fingers burnt...it's a low-life occupation in my opinion. Bit dangerous here when the whole offer is underwritten!