In the summer of 1991, the chairman of this diversified company is contemplating whether to proceed to raise (in British pounds) GBP32 million in new equity following the surprising news that the firm will produce losses for the calendar year. This news represents a dramatic departure from analysts' expectations for the firm. Should British Aerospace issue shares immediately, before the entire impact of the news is absorbed by investors, or wait? The case can be used to introduce students to the rights-offering method of selling shares of common stock, the principal method of share issuance in Europe. This case is also an excellent vehicle for exploring the moral hazard inherent in the information asymmetry between managers and investors; the situation presented here illustrates the potential for opportunism theorized by Myers and Majluf. The B case (UVA-F-1048) presents the epilogue, in which investors react violently to the adverse news and the announced rights offering. The chairman loses his job; the share price settles at half its former value. Ultimately, this case series permits students to explore the possible definitions of success in securities issuance.