RE: RE: RE: RE: RE: correction re: impression RE: I fail to see how voting shareholders loose $1/share is a FOR vote passes and a 1:1 combination takes place. The reason why is related to my point about a guaranteed 1:1 in the event of a takeover. My rationale is as follows:
If anyone wants to 'buy' TELUS (the entire company), they will offer the market cap plus some premium. The market cap is determined by the prevailing market price of the VOTING shares (since NV and V are treated the same way for a takeover). So, if I were to take the present value of the company, I would be forced to calculate it as:
Non-voting shares outstanding: 150M
Voting shares oustanding: 174M
Total share count = 324M
The current market cap as far as an acquision is concerned is 324 * $63.22 = $20.483B.
After the consolodation takes place, there will be 324M voting shares. The market will still value the company at $20.483B. There is no reason for this to change, and the value of the company remains the same (only the share structure has changed). Therefore, each share is now worth $63.22.
Before conversion, VOTING shares worth $63.22.
After conversion, VOTING shares worth $63.22
There is no loss.
I agree that the NON-VOTING shareholders have gained value. But, this has absolutely NOTHING to do with TELUS. In fact, it is the SELLING NON-VOLTING shareholders that decided to sell their shares cheaper than the VOTING shares. So, in fact it is the SELLING NON-VOTING shareholders that 'lost' the $1. It was completely up to them to sell their shares at this price.