Biotech Values

[DewDiligence]

[OT] WM update:

http://news.yahoo.com/s/nm/20080917/bs_nm/washingtonmutual_tpg_dc_1

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Washington Mutual overcame a critical hurdle to a merger earlier on Wednesday when its largest investor, David Bonderman's private equity firm, TPG Inc, agreed to let the thrift raise capital, even if TPG's holdings were diluted.

Washington Mutual shares rose 20 cents to $2.21 in after- hours trading after falling 31 cents to $2.01 during regular trading.

…TPG agreed to waive a provision requiring Washington Mutual to make up any dilution if the thrift raised more than $500 million of equity for less than $8.75 per share, or sold itself for less than that price. The private equity firm earlier this year acquired a $2 billion stake in Washington Mutual at about $8.75 per share, as part of a $7 billion capital raising by the thrift.

Regulators did not ask TPG to waive the provision, but the firm did so because it could have dissuaded a bidder, a source said.
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