Australian Money Forum

[unixAdmin]

For those with Suncorp Metway (SUN) shares, and the fact that they have lost 75% of their worth in 9 months, a double hit. Now, to raise funds, their shares will be effectively degraded another 20% as a capital raising adventure starts. Suncorp-Metway intend to dilute the current share base by offering shareholders a share per five held at $4.50. Where does Suncorp-Metway get the authorisation to simply "print off" more shares?

The Board has stated that John Mulcahy has led Suncorp-Metway to an immeasurably stronger position for resources and capability. Really? Then why have I alone lost tens of thousands of dollars trusting this person and the Board. They'll need to raise a little extra for John's going away package. What can we do about it? Nothing its only our money but the "Board" has control.

This "Board" and its CEO make me physically ill. Can a company simply "print off more shares"?

[pointstores]

It appears so. The practice is quite common in Europe at the moment also

[wulfgar]

That's one of the big downsides with shares. Like governments they can print.