Post by
letsgetready on Sep 08, 2013 6:34pm
re Thanks (I Guess)
Tarquin, everything can't be exactly 50:50..i would bet most merged companies are not exactly equal in size before they merge (I would expect one is somewhat larger than the other in most cases)..here we have an almost 50:50 equal merger..rare..i guess AMW shareholders get more of New FCU (being 51.5% ownership in it) as they have more cash on a fully diluted basis than FCU..even though the other asset they contribute to New FCU, being their respective interests in PLS are equal (i.e 50% of PLS).
As for management and directors, this has to be divied up somehow. There are no hard and fast rules as far as I see it, so New FCU will have 3 directors from the old FCU side and 2 from AMW..not too different..their responsibilities are to act on behalf of all shareholders and maximise sharholder value.