Sensible UK rights issue reform could have gone further

Author: Nicholas Pettifer | Published: 27 Nov 2008

The Rights Issue Review Group has published a report that would make UK rights issues more efficient. But it could have gone further.The group was set up in July this year and was co-chaired by the UK Financial Services Authority (FSA) and the Treasury. It delivered its report to the UK Chancellor of the Exchequer earlier this week.“This is a very sensible framework for correcting some of the problems we have seen with rights issues this year. For example, reducing the subscription period from 21 days to 14 days is a no-brainer,” said Will Pearce, corporate partner at Herbert Smith.Historically, due to the speed of the postal service and other administrative delays, shareholders were deemed...