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Wednesday, 10/22/2014 8:41:27 AM

Wednesday, October 22, 2014 8:41:27 AM

Post# of 725170
Thoughts on WMIH?

Since there has not been a merger for WMIH aligned yet, more and more I believe they are POSSIBLY waiting on reconciliation from the P&AA/JPM/FDIC. At the worst, there has to be SOME form of value returning to WMIH. We know JPM did not get everything and we also know whether small value or VERY LARGE value, there has to be something coming back to WMIH directly or via WMILT.

So with that said, why would they dilute existing equity to pay for a "like size" merger now? They cannot run afoul of the tax attributes/IRS. If there was value coming back to make WMIH, say for example worth two billion, it would make since to wait until they do the first merger.

So the first merger they would do at this point would be a "like size" merger which would be two billion versus what WMIH is now worth which is around 400 million. This before diluting equity, they would want to be as large as legally possible before executing their first merger.

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