United Utilities A shares ?

Jun 10, 2005 1 Replies

Excuse my lack of understanding but is this a no brainer?



I have original rights to something like 575 A shares,originally paid something like £1.65.



Current share price is £6.55 for ordinary shares though there will be a 2-1 consolidation.



Is the obvious choice to take up the rights?,is it likely that the price of the consolidated ordnary shares will drop much??



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The prices of the shares is such that there is virtually no difference between them.

UU. closed at 660p, UU.A closed at 329.5p, UU.N closed at 163p,

So if you pay your 165p to convert your UU.N into UU.F and then UU.A and then UU., it will cost you 328p*2e6p. Everything is now XD and everybody knows the situation, so there will not be much movement. The slight differences represent transaction costs.

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