Essar Steel
ESSAR STEEL book closure around the corner on 6th & 7th August 2004. There is a proposal to write down 40% of the equity & issue 0.01% preference shares to share-holders in the ratio of 4 out of every 10 shares held.
My question is; is this beneficial to share holders as these preferential shares are redeemable every year commencing only from 2017, a long, long way off?
Will this have any effect on the stock price soon after the AGM on 7th August 2004? UP or DOWN
In short; should I sell, hold or buy some more ??????