Xstrata "to sell shares for £2.10" - how do I buy?
Xstrata "to sell shares for £2.10" - how do I buy?
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CzechItOut

Original Poster:

2,156 posts

222 months

Thursday 29th January 2009
quotequote all
BBC News said:
The mining group Xstrata plans to raise £4.1bn ($5.9bn) in a discounted sale of new shares to cut its level of debt.

The company said it will offer investors 1.96bn new shares at £2.10 a share. The shares closed at £6.23 in London on Wednesday.
How would a layman, like myself, go about buying these shares for £2.10? Are they only available to institutions or current share holders? The Current share price is still over £5.00.

dazren

22,612 posts

292 months

Thursday 29th January 2009
quotequote all
Only available to current shareholders.

Horse_Apple

3,795 posts

273 months

Friday 30th January 2009
quotequote all
It's an issue to existing stock holders on a pro rata basis.

You can't buy at 2.10 and sell and 5 for a nice profit wink

JustinP1

13,364 posts

261 months

Friday 30th January 2009
quotequote all
Horse_Apple said:
It's an issue to existing stock holders on a pro rata basis.

You can't buy at 2.10 and sell and 5 for a nice profit wink
As with most of the stock market, it is not quite as easy of buying a ton of lead and seeing turn into gold overnight.

(Or preferably even before you have bought it...!)

Horse_Apple

3,795 posts

273 months

Friday 30th January 2009
quotequote all
JustinP1 said:
Horse_Apple said:
It's an issue to existing stock holders on a pro rata basis.

You can't buy at 2.10 and sell and 5 for a nice profit wink
As with most of the stock market, it is not quite as easy of buying a ton of lead and seeing turn into gold overnight.

(Or preferably even before you have bought it...!)

nsa

1,704 posts

259 months

Friday 30th January 2009
quotequote all
These new shares will dilute the number of current shares in issue and when they start trading all shares will be at the combined average price. Existing shareholders might get a small discount, but whatever shares are >£5.00 now will be at say £2.50 when the new shares start trading. I haven't looked at the numbers but you can work out a rough average fairly easily.