Virgin snubs ASA on capital raising cap, ASA plans Panel complaint THE Australian Shareholders Association will proceed with a complaint to the Takeovers Panel about Virgin Australias $350m capital raising after the airline today rejected the associations call to lift restrictions on the retail component of the offer. Virgin listed a number of reasons for its decision not to lift the 40 per cent cap on the ability of retail investors to apply for additional shares above their entitlement, including the airline's belief it was fair and equitable for all shareholders and that there was strong market precedent in terms of the offer being non-renounceable. The carrier also argued the offer price was set at discount that seeks to avoid the over-dilution of shareholders who did not participate, and also provided a pro-rata treatment for all eligible shareholders for their entitlements. But the ASA was unswayed and will lodge its objection today or tomorrow. The retail component of the share offer opens on Monday. The association believes the current structure was designed to expand the stakes and influence of Virgin's cornerstone shareholders - Etihad, Singapore Airlines and Air New Zealand - while diluting the influence of retail shareholders. The ASA is expected to push the hardest on the issue of the 40 per cent cap on the additional shares retail investors could apply for above their entitlements. The association noted that the last time Virgin raised capital, in 2009, the company offered unlimited additional stock to retail investors.