If Big Jim merges his companies after floating an additional 1.3 billion shares, I would really expect the share value of PLNI to be run down before an announcement and then, we would see an announced date of the issue of 1 share of TBLU for X number of shares of PLNI. At that point, the value of PLNI will float to the exchange rate which will be slightly up from the PPS at the announced date.
However, I have never seen a long-hold in the dissolved company do very well (i.e. Raytheon-Hughes merger).
The second thing that usually happens (unless you are a company purchased by YHOO) is a decrease in value immediately after the consolidation. Usually, there is a sell off and the PPS goes down. Longer holders at that point might or might not (depending on the company and it’s profitability and it’s listing board) have some gain but the number of shares held at that point will be similar to a major reverse split.
Who would benefit? The resulting company would have a capitalized value of both companies less the loss per share. It might also have a PPS large enough to gain a major board for better exposure. Of course, that is of no benefit unless you are profitable (i.e. DAL, KANA, etc)
I have no idea what’s on Big Jim’s mind at this point but, if he is a good businessman, he will consider his own business and not the business of the stockholders until such time as he makes stock options part of a compensation package for himself and his executive managers. Then, it'll be a different story. Now, only a cash generator for Big Jim.
This is only my opinion and has no basis in fact other than conclusions that I have drawn from historical stock transactions, which are also only my opinions.
AI
