Pending Qantas announcement halt trading on ASX

[SeaWolf]

Looks like it was about capital raising:
Qantas slumps after capital raising

Shares in Qantas Airways fell nearly 20 per cent on resuming trade after Australia's top airline raised $500 million in an issue of new shares at $1.85 a share. Qantas shares were down 18.6% at $1.865 in mid-morning trade.
Qantas said the placement of about 270.3 million new ordinary shares at $1.85 each was a 17 per cent discount to its closing price of $2.29 on February 2, "after adjusting for the 2008/09 interim dividend of 6 cents per share''.

 

[NM]

Qantas said the placement of about 270.3 million new ordinary shares at $1.85 each was a 17 per cent discount to its closing price of $2.29 on February 2, "after adjusting for the 2008/09 interim dividend of 6 cents per share''

Of course they are ignoring the fact that the $2.29 share price close was already somewhat discounted due to the rumours, which is what triggered the ASX to question Qantas regarding the sudden share price dive. It could be considered a 25% discount on the $2.54 close of the week before (similarly considering the 6c/share dividend).

 

[SeaWolf]

Of course they are ignoring the fact that the $2.29 share price close was already somewhat discounted due to the rumours, which is what triggered the ASX to question Qantas regarding the sudden share price dive. It could be considered a 25% discount on the $2.54 close of the week before (similarly considering the 6c/share dividend).

But it's not much (or any) of a discount at the current trading price (at 13:15EDT).

 

[medhead]

Then again, as the divvy is 66% lower the price seems about right, if not a little high, at a nominal 6% annual yield.

edit: Actually, 6% is quite good given todays interest rates. ummm

 

[NM]

But it's not much (or any) of a discount at the current trading price (at 13:15EDT).

$1.895 is still 23% discount from last week. I think those who were offered the $1.85 issue will be happy in the medium term. Those who purchase shares a week ago are going to be less happy.