Abstract
In an exploratory study, Armitage (2010) investigates the ultimate buyers of UK
seasoned equity offers. Although pre-emptive rights are enshrined in company law
and provide a source of value to existing shareholders, a sizeable proportion of newly offered equity is not taken up by rights holders. With an extensive manually collected database, Armitage (2010) considers the underlying reasons driving this free transfer of valuable rights, and discusses the efficacy of alternative offer methods in meeting the needs of a corporation’smain stakeholders – that is, itsmanagement and shareholders.
seasoned equity offers. Although pre-emptive rights are enshrined in company law
and provide a source of value to existing shareholders, a sizeable proportion of newly offered equity is not taken up by rights holders. With an extensive manually collected database, Armitage (2010) considers the underlying reasons driving this free transfer of valuable rights, and discusses the efficacy of alternative offer methods in meeting the needs of a corporation’smain stakeholders – that is, itsmanagement and shareholders.
| Original language | English |
|---|---|
| Pages (from-to) | 449-455 |
| Number of pages | 7 |
| Journal | Journal of Business Finance and Accounting |
| Volume | 37 |
| Issue number | 3 |
| Early online date | 10 May 2010 |
| DOIs |
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| Publication status | Published - 10 May 2010 |
Keywords
- seasoned equity offer
- open offers
- placings
- rights issues
- blockholdings