Lawson Ltd makes an announcement about raising equity through a cash offer at a 5% discount to the current market value. There is no other news that may cause share price to change on the same day. Assume market is efficient. Which of the following price reaction will be most likely to occur according to adverse selection theory?

A) Share price will increase.

B) Share price will decrease.

C) Share price will remain unchanged.

D) A and B are equally likely to occur

E) B and C are equally likely to occur