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Reggie,

I am confused about the LEH recapitalisation package. I understand they are raising $6 Billion, $2 Billion in preference shares and the other $4 Billion at a share price of $28.00.

The share price yesterday fell to $27.50, so who would purchase at $28.00???

Surely there has to be a risk attached to shares in LEH (probably a big one) which means that you would expect a big discount to current share price ($27.50)?

Therefore either the offer take up will be negligible, or the offer price will have to be reduced, thereby increasing the share dilution of the current equity holders ( If they still require $6 Billion).

This is correct or I am being incredibly sense.