MEMC INT'L. (WFR -NYSE) The Sleeping Giant? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Zeev Hed who wrote (4248)	3/2/1999 11:08:00 PM
From: Carl R.	of 4697

Zeev, as for the rights offering, this is how I see it: In all cases the number of dollars each shareholder would have to cough up is the same, and related to their proportional share of the business. The sole difference is now many shares the holder would get at that price. If the offering had been done while the stock had been at 10, then two things could have happened. One is that the stock would have been pinned at 10, and would still be trading in that area. The other is that the stock could have fallen below the strike price, in which case the existing shareholders would elect to not cough up the money. In that case, VEBA would be forced to come up with the money. Thus for VEBA the choice was simple. If they want to put up as little cash as possible, they want the lowest possible strike price. If they want to buy the maximum ownership stake, they want the highest possible strike price. Since they elected to wait, and since they are pricing the offering at a low price, I presume that they aren't particularly interested in buying additional shares in the $10-12 range. Carl

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next