Another Australian company has shown retail investors what it really thinks of them, with glovemaker Ansell raising $338m from institutional shareholders -...

OnMarket

Another Australian company has shown retail investors what it really thinks of them, with glovemaker Ansell raising $338m from institutional shareholders - writes Mike King from Motley Fool. While the co. has also announced a SPP of $100m for existing shareholders, that's no excuse for conducting a nonrenounceable rights issue. Instead, unnamed, favoured clients of IB UBS will be allocated shares in Ansell at a 4.9% discount.Those clients are likely to be the ones paying UBS the most in brokerage fees, in a 'scratch my back, I'll scratch yours' example of cronyism.Ansell ignored another facility that would have made it fairer for investors, by bypassing the ASX BookBuild facility.ASX BookBuild allows all eligible investors and ASX Brokers to participate in a capital raising. Retail investors can still be excluded if the issuer or their Lead manager chooses,but at least it's an open and fairer process than the current institutional placement.


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