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steve
09-26-2004, 10:06 AM
Hey i dont know if i should be asking this sort of thing here but..here goes. I am studying business a-level and have been given a question which I am..struggling with. Its a Case Study on Orange, the mobile phone company. Basically, they have two principal shareholders, and when the company began floating their shares on the stock market the main shareholders only floated around 25 per cent. Why 25 per cent?
Any help would be greatly appreciated, Steve.

discountdomains
11-09-2004, 03:14 PM
Well

75% is a magic number because you can force through major changes if you pass whats called a special resolution.

I guess in the case of orange the major issue was fund raising and by keeping 75% they allowed for a future significant disposal e.g another 25% etc

Clare