Replies to post #2292 on Dime Bancorp Inc (fka DIMEQ)

[newbie65]

what was the outstanding before dilution?

[jmbell42]

Hey Scott, if you divide your two numbers by one another you get the following:

Old Way (i.e the DIme Way) 1 LTW = $2.265
New way (i.e. the WaMu Way) = $2.017

2.265/2.017 ~ 1.1232 = Dime Exchange Ratio.

Basically, the numbers are different because the shares are treated differently through the Dime Exchange ratio and that is source of the discrepancy

I had actually ignored the Dime Exchange ratio before, so thanks for bringing that point up.

Best,

Jared

P.S. Don't forget that we have Tax Gross up and the extra $63 M (possibly) this also impacts the net payout.

[loginusername]

The merger adjusted stock price refers to the price of wamu for determining how many shares of wamu you would receive. In the example, they use a price of 40(kind of funny), times the 1.1232 merger adjustment, which means that $44.928 would be the price used to determine how many wamu you'd receive even though wamu was trading at 40. If the amount recovered was 44.928/ltw you'd receive 1 share of wamu using those numbers.

In the present situation recovery will hopefully be paid in cash.