You are assuming all preferred are converted to common. There are limitations and the time frame may not permit this.
Also abusive dilution would continue to drive the price down. The institutions involved may be sophisticated enough to understand that fewer shares at a higher buyout price would make more money for them, and also current holders of the common.
Even at 85% dilution we would still make a hefty penny assuming they sold for fair value. What bugs me the most is the thought of the likes of alpha that has been destroying shareholder value making out on the acquisition. Not sure there is time for us to see penny land unless Sonny plans to have nasdaq hearing missing the annual deadline.
By my estimates OS need not exceed 12mil shares to guarantee 80% vote yes to merger with Zimmer. As far as a poison pill is concerned this seems excessive.
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