InterDigital Inc (IDCC)

[jealmc79]

in your world Mr. X buys the convertibles and takes the stock and does not want to sell.

IDCC is Mr. X. Why would they want to sell, they have been buying back stock for years? Maybe to trade for the warrants they sold?

Mr. Y sold IDCC the calls. IDCC calls in the option. Where does Mr. Y get the stock as institutions own over 100%. Not only that Mr. Y sold IDCC the 2027 calls. He now has to come up with over 20% of the company.

Did you ever think that Mr. Y also bought the warrants and made a profit doing so? Not too hard to figure out.

Why would IDCC bother with a Dutch Auction?

To accomplish their share buyback goal evidently.

They could just buy calls.

Doubt if that would work on the open market. Probably why they are using hedge funds to do it.

The only true call in this are the warrants.

Could be. The hedge appears to be more of a call spread, hence the dilution over $109.43 if the warrants are exercised.

Makes more sense than IDCC essentially selling(diluting) about 3.2-3.8 million shares at $109.43 to unwind the 2024 convertibles(what you're saying), only to turn around and buy them back at even higher prices while paying interest and $10's of millions in transaction fees. Just makes no sense.

Neither option makes a lot of sense, since IDCC has plenty of cash without the convertibles, but your way seems to make even less sense.

Now about them golfers.............