Star Telecom in bonus issue

Star Telecom International Holdings is proposing a bonus issue of warrants expiring on December 31 next year, on the basis of one warrant for every five ordinary shares. The full exercise of subscription rights attached to the warrant issue, which is subject to shareholder approval, will result in the issue of shares representing 16.67 per cent of enlarged capital. Each 1998 warrant will entitle holders to subscribe for one share at $2.50 a share. The shares closed last week at $2.87.