A: I answered a very similar question last week (below) – I hope this covers off your question as well.

Question: I would appreciate your view on the Qube entitlements offer at $2.05. Also, your view on the top up offer that lets you buy the same amount of new shares again at $2.05. The discount is only about 7% but Qube should be a better proposition after this new purchase, in my opinion. Closing date is 1 April, so any comments appreciated.

Answer (Paul Rickard): With Qube trading at around $2.31 and the Canadian Pension Plan Investment Board paying $2.14 for their shares, it is a no brainer to take them up at $2.05.

The question is: what you do then?

My inclination is that they have paid top dollar and that the synergy benefits may be more difficult to achieve. I would probably lighten off. Also, I wouldn’t count on getting too many shares under the top up offer, as the entitlement offer will be very heavily supported.