IPPs and Merchant Energy Co.s Message Board

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Strategies & Market Trends : IPPs and Merchant Energy Co.s

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To: leigh aulper who wrote (3346)	1/5/2006 7:26:34 PM
From: Area51	Read Replies (1) of 3358

From post 3345: For example, a stockholder who had 1,000 shares of the old Mirant last week will own 27 shares in the reorganized Mirant this week, along with warrants to buy 87 more shares at the set price. The $21.87 strike price is below the price Nasdaq traders are betting the new stock will be worth. So 27 shares of new MIR plus 87 warrants (5 year?) to buy @ 21.87. Plus owners of old common will be entitled to 50% of any settlement with SO or so I gather. At a price of 24 and a guesstimate of $7 for the warrants 1000 MIRKQ = 27 * 24 + 7 * 87 = $1257 so maybe this_is_the_end was smart to sell over 1.40 (but depends on what value you place on the southern suit and of course future MIR performance) The new stock (MIR) should start trading about 11 January and I would expect the exchange of MIRKQ to MIR\ warrants about that time.

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