From Mr John Grout.

Sir, Corporate treasurers, who come from the issuer side of the market, fully support the views of the ABI, representing investors (Letters, June 5), that the UK process for rights issues is a fair and cost-effective way of raising capital and superior to the use of placements in the US. Discouraging dilution of control and transfer of value from existing shareholders to newcomers is very important as part of minimising long-run cost of capital for companies.