WE refer to the article (Business Post August 9) headlined ''Seaunion bid flounders''. We believe that the article has given the investing public a wholly misleading impression of Seaunion's proposed rights issue and have, accordingly, felt it important to set out for the record our reasons. You will note from Seaunion's full page announcement contained in the South China Morning Post that irrevocable undertakings to take up rights shares have been received from in excess of 44 per cent of the shareholders of Seaunion. The offer of rights shares has yet, of course, to be made to the shareholders of the company and it is, in our submission, premature to comment directly, or indirectly, or by implication, on the success of the rights issue. The shareholding in Seaunion is widely held with no individual shareholder holding more than 22 per cent of the issued shares. The board of directors of the company has inevitably been restricted in the number of irrevocable undertakings it was practicable to obtain. The company is, however, able to confirm that all shareholders approached to give irrevocable undertakings to take up rights shares did so. In these circumstances, we believe that undertakings from shareholders representing in excess of 44 per cent represents considerable support for the company's proposals and that such percentage should not in any way be taken as indicative of the level of support of other shareholders who have not yet had the opportunity of considering the company's proposal. ROBERT LAI Managing director Seaunion Holdings Ltd Business Post welcomes letters from readers. Correspondence can be faxed to us on 565-1624.