Two potential dilutions, right? Sr.Preferred and warrants? Warrants: there are many saying it would be illegal for the government to exercise them. But I haven’t seen the language of the warrants contract.
SrPreferred: Ackman says gvt would not really benefit much from converting these to common, and that they’d be better off canceling these (and agreeing that they have been “paid back”) and then selling their warrant-exercised shares in the open market steadily over 5 years, thus capturing a huge profit.
Yes. many say the senior preferreds will likely be deemed to have been paid off. But again, the language of that contract doesn’t necessarily require that.
Do I have that all correct?
If the warrants are exercised, it dilutes common shares by about 80%.
But What’s the total dilution if both warrants and sr preferred end up being decided against shareholders? Did someone calculate it’d be 90%
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