Berkowitz is proposing a $52 billion investment and his concern is to obtain and deliver that amount. To do so, he needs the support of other preferred shareholders and new investors to reach that goal. He does not need to have 100% of the preferred holders participating as that would be an unrealistic goal. He is only required to have a sufficient number of preferred shareholders whose holdings will bring the amount of share to be converted and exchanged for common shares of the new companies ($34.6 billion worth) and 17.3 billion in new cash from preferred shareholders via their purchasing shares in a transferable rights offering or selling their rights to others to make the deal as promised.
We are very light on information regarding this rosen62 since we do not know who are the largest shareholders in his groupings and amount of their holdings.
We are left with his confidence that it can be done with existing preferred shareholders, some others who buy the transferable rights from preferred shareholders and a few vague referrals on how it will happen is all we have.
What is interesting is that this proposal generates an automatic gain of about 20 billion in cash and cash equivalents when the new companies acquire most of the operating assets and the entire restricted capital of the GSEs.