Good old Gilberto has been bending the ear of his compatriot Felipe Melo. Although I’m not totally enraptured by the thought of Melo joining up it’s nice to hear that Gilberto still thinks highly of Arsenal unlike some of our past players.
Melo yellow, tapped up by Gilberto Silva?
“We heard rumours and he asked me.I said it’s a fantastic club and if he’s interested he should go without thinking. He is exactly what they need – a powerful player with quality. If they got him it would be great because he is a player they need at the moment.
For me Melo is just an older Denilson, I don’t see how much more he could improve the squad. Frankly all the possible targets that get mentioned for a Centre/Defensive Midfielder, fall in 3 categories, either they are too expensive, not that good, or not available.
The midfielder we get —if we even get one— will be totally off the radar.
I read in the Telegraph that the club is seeking advice from their bank about the viability of a rights issue among shareholders. Now we know where that idea came from, and at the time I said it was all part of an attempt by Usmanov to ingratiate himself with Arsenal fans. What I didn’t mentioned is that with the “fatman” willing to serve as an underwriter for this scheme it would represent an opportunity for Usmanov to increase his shareholdings at Arsenal FC, here’s how.
Share rights issue 101
Say Arsenal has a total of 1000 shares at a value of £1000 each (the actual figure is 62219 shares at £6950 giving a market value of £432.4m) a rights issue would allow them (Arsenal) to issue an additional 500 shares at £500 each to existing shareholders in proportion to shares owned. So if you own 100 shares you would be offered 50, that way you will still own 10% of the company. The caveat is what happens if you cannot come up with that £25000 (50 × £500)?
That’s where Usmanov comes in, as the underwriter he will be obliged to buy any share that are not taken up so Arsenal is guaranteed to raise all of the £250000 (500×£500), which is a good thing right?
Well it depends on if you are happy to see your shares diluted, you now own 6% of Arsenal not 10% even worse that value of that 6% is not the previous £100000 but instead the value has fallen to £83,333 you’ve just lost £17000.
What’s more is that Usmanov now own more of the club because he’s just bought the 50 share you couldn’t afford along with that of the other shareholders in a similar situation as you.
Imagine the amount of shareholders who fall in that category. Members of the AST will be hit hard, remember we’re not discussing share worth £1000 as I write a single share in Arsenal FC is worth £6950. The AST has 750 members who owns an average of 2.5 shares and remember that those were bought years ago when they were worth a fraction of the current value. I am willing to bet that these are the people who will be forced to dilute their share, with Usmanov smiling all the way to outright ownership of the club.
I don’t think that the club should even entertain the idea, the Guardian seem to agree. What do you think?
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