Dime Bancorp Inc (fka DIMEQ)

[wall_street61]

Where in the hell do people keep coming up with this 'billion' value number?

The disclosure statement gives clear guidance on the available value to be distributed to the entire common equity class, whether it includes DIME or not.

That number is 57 million, which is 30% of 190 million (the total distributable value to preferreds and common combined).

57 million divided by 1.7 billion = .034 cents per share. That is what commons are worth without a DIME dilution.

The DIME dilution, if it comes, is not anywhere close to being clearly explained in the Disclosure Statement. Matter of fact, someone ought to be kicked in the pecans for putting that 500 word long single sentence in there.

Since there is to be 200 million shares of NEWCO issued in exchange for existing interests, it roughly translates to a buck a share for simplicity's sake.

Therefore, a holder of common now will have to exchange approximately 33 shares to get one NEWCO share.

IF DIME gets thrown in the mix, I couldn't honestly tell how the dilution will go. But I do know the existing commons will take a beat down from .034 cents. They may wind up with an exchange rate of 200 to 1 NEWCO share.

If DIME got the entire 57 million, which won't happen, it figures 50/cents share for DIME.

How the newco performs and how the market prices it is a wholly different matter.