General Growth Properties Inc. (GGP)

[justthefactsmam]

based on the way you are asking the question, ggp will dilute. however, by issuing additional shares AND retiring unsecured debt, the impact on pps will not be severe, imo.

for anyone entering this stock in double digits, the impact will be greater. for those in below a $1/share, in a way, who cares? there are a number of investors sitting on 30 to 40 baggers already. if the stock goes to $25 instead of $30, it's not a big deal.

remember, even if the stalking horse "deal" gets court approval, the warrants for ggp would be for 7 years at a $15/share level. that assumes the ggo/ggp split. if the split scenario, the ggp is valued at $10/share and the warrants are in the money at $15/share.

while i would rather not see the warrants, i like the fact the unsecured debt drag on the balance sheet will go away. if ggp emerges as a standalone and you are holding for 2-3 years, i really don't think you are going to care one way or the other.