Fannie Mae Preferred S (FNMAS)

[stockanalyze]

Pg 31
What’s in it for common stockholders?

-The preferred stock is removed as a senior claim on the run-off value of Fannie and Freddie
-The run-off of the historical assets is valuable and should generate significantly higher recoveries than litigation, so long as the terms can be arranged fairly
-There may be an opportunity for common stockholders to purchase NewCos common stock, perhaps by allocating to common stockholders a portion of the rights offering or by their providing incremental
capital



pg 5 (this is hilarious : “In order to avoid any perceived unfairness to other stakeholders”, hey buddy we are talking finance, not a charity. you are not doing a favor)



Common Stockholders

In order to avoid any perceived unfairness to other stakeholders,
the NewCos also would consider making a portion (between 10%
- 20%) of the rights offering available to holders of common stock
in the Enterprises, including the warrants held by the U.S.
Treasury on an as-converted basis. Any rights issued to the U.S.
Treasury would be sold to private investors, thereby providing
parity treatment to the U.S. Treasury while avoiding any implication that the NewCos are owned, supported, or controlled
by the United States Government


http://www.fairholmefunds.com/show_pdf.php?file=http://www.fairholmefunds.com/sites/default/files/FAIRHOLME%20CAPITAL%20MANAGEMENT%20ANNOUNCES%20PROPOSAL%20FOR%20PURCHASE%20OF%20INSURANCE%20BUSINESSES%20FROM%20FANNIE%20MAE%20AND%20FREDDIE%20MAC_0.pdf#pagemode=bookmarks