RE:RE:RE:RE:QuestionThe funds own 20 million shares so are selling 6 million. The average share volume for Y is 2700 a day. Impossible for them to sell this many shares on the open market within any reasonable time frame without crashing the share price. And why sell in the open market anyway? Even if they could their % ownership would fall from 78 to 54%. Under the plan their ownship still remains at 78% and they get $75 million to boot. Like magic. Since all shareholders are treated equally someone even owning 100 shares would end up with a nice dividend and the same ownship % as previous.
I don't think anyone would buy shares at a higher price than $12.58 today just so they can have a loss on 30% of them for tax reasons. A loss is a loss. The only reason people would pay more today is that they believe the shares will pop much higher than current prices after the deal is complete. They'll loose on the 30% they have to sell, but gain much more on the 70% they'll still hold. A decent bet, but I'll wait and see what the shares do after Sept 23 and perhap buy back some or all of the ones I sold depending on the price. Otherwise I happy to just go forward wiith my remaining shares knowing that the profit per share will increase nicely based on the lower share count, and I can put the money received elsewhere.