Sensible rights issue reform, but it could have gone further

Author: | Published: 1 Dec 2008
There’s no need to drive a horse and cart through pre-emption rights

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...