New valuation : FDIC
Few important points to be considered for valuation of old share holders : Common and preferred
1. Indybank did not go bankrupt, it was taken over by FDIC for conservatorship to ensure the bank remains operational and peeps dont pull out all the deposits and to avoid bankruptcy. So it was a FDIC guranteed temporary ownership.
2. New investors after the buy out from FDIC would like to have lesser stake for old investors to maximise their chances of profit in future. There is no way they can take control of preferred shares , but they can buy the commons from open market by keeping a low price till they acquire majority of common stocks. and then resolve the old investor share value in the new company at their comfort. For example : if they own 90 % of common they may keep the value of old shares intact. In another word , old shares and new shares will be valued almost at 50- 50% or 40-60%. If they are not able to own the majority of old shares, they will negotiate with majority old share holders to reach a resonable value for old shares . my guess is anywhere between 20- 30 %. In either case this will be valued much much more than 14 c. So no reason to panic or getting rid of your shares.
3. Since this is no bankruptcy settlement, old investors cannot be wiped out with out the fear of cases being filed in court. FDIC or new investors does not have the authority to wipe out commons without the intervention of courts or BK court. But they can reach into a settlement with old common shareholders for a fair value of old shares.Hence the 30-60 days time to close the deal.
4. My guess is the new investors will buy all the old common shares or most of it by eithr keeping the prices down or by running it once or twice bfore deal settlement. That would put them in a better situation to deal with old investors.
5. At this point for me the valuation is the additional 13.9 billion divided by double the outstanding ( 50 /50 ratio) + share value at the end of friday trading.
All the above is my analysis and opinion and please do not buy or sell your shares based on this analysis. use thsi with your understanding to make a decision
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Disclaimer: Do not buy or sell based on my recommendation. I am not your financial advisor .My recommendations are based on my intuition, research or both and may be right or wrong.
