GAB Rights Offering Strategy

Gabelli Equity Trust has launched a rights offering with a fixed $5.50 subscription price per share, requiring 10 rights for each new share. The economic benefit of subscribing depends on GAB's share price at expiry; subscription is only attractive if the price exceeds $5.50. Rights holders should monitor GAB's share price closely; if it falls below $5.50, selling rights may be prudent as subscription becomes uneconomical.