ok, but the setup does not indicate that...
here is why...
if I have 10K share of the common, I, as a shareholder, can, buy 1 share of the Junior A preferred at $100... now, for a hostile takeover, the acquirer can buy all they want of common shares in the open market... does the acquirer have to pay $100/share of the Junior A preferred shares to complete the acquisition ? or can they just accumulate shares in the open market to give them controlling authority and value the rest later ? and even if the acquirer has to pay $100/share of the Junior preferred.... that only means that a shareholder will get an additional $0.01/share on his/her holding... i.e., if one has 10K shares, bought 1 Junior A preferred, and the acquirer has to pay $100 to buy it, so, they are paying $0.01/share of common additional to what they are valuing the common
I am of the understanding that if an acquirer has enough common stock to have controlling authority, then the Junior A preferred stock is a non issue... but I could be wrong
regards
amein
by the way, I am niether long nor short ICGE... just trying to understand why they did what they did |
