Now in charge of pension funds worth £50bn plus, and with sizeable shareholdings in a large proportion of the quoted sector, he had a platform for implementing many of the ideas about which he had been thinking for a long time.
The shares in Great Southern peaked at A$4.76 at this time, and Young sold a significant proportion of his shareholding, netting him A$32.6 million.
In a rights issue, a firm seeks extra funds from its investors in proportion to their current shareholding.
Why were the US funds so keen to lobby for a greater shareholding, thereby writing off a greater proportion of their bonds?
When that boom busts, the gain in Spain will turn mainly into pain.Spanish capitalism, for all its new-found foreign elan, is still a clannish affair, with banks holding locking stakes in companies and firms holding cross-shareholdings in each other, which limits the proportion of shares that float freely.
Some part of the shareholding needs to be reserved for financial institutions – but that proportion scaled back if the public demand exceeds expectations.
Promote a shareholding culture.
The government has increased the proportion of shares granted to ordinary investors from 30% to 33%, by reducing the amount going to pension funds and other institutional investors from 70%to67%7%. Malcolm Hurlston, chairman of the Esop Centre, which promotes employee shareholding schemes, said it was "disappointing that so much" had been reserved for City funds over small investors.
It will take a 21.3% shareholding.
The other three dilute the government's majority shareholding.
