Letter: Tottenham's rights issue

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The Independent Online
Sir: As financial adviser and underwriter to Tottenham Hotspur's recent rights issue, I write regarding "Tottenham wastes some money" (26 April).

Your article seems to suggest that non-underwritten deep discount issues occur on a daily basis and that the Tottenham issue is a departure from normal practice. I would suggest that such issues occur rarely and, when they do, are often associated with troubled corporates wrestling with financial difficulties - hardly a description which can be ascribed to the recent strong performance of our client.

The total costs of the transaction are pounds 355,000, including total underwriting commission of pounds 154,000, representing 3.2 per cent of the gross proceeds of the issue. If you have any suggestions as to where Tottenham could have gone to guarantee raising pounds 11m at a cheaper rate than that, Alan Sugar and I would be pleased to hear from you.

Michael Cobb

Director, Henry Ansbacher

London EC3