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Telephone & Data Systems Inc. Message Board

  • sonofskeptic sonofskeptic Oct 7, 2011 12:19 PM Flag

    Share Consolidation

    What's the board's opinion on TDS/TDS-S share consolidation? To me it seems like a good thing; TDS is perennially undervalued, and the board seems to think that the crappy share structure may be keeping potential acquirers at bay. Unlocking value by putting the company up for sale seems like a good thing, no?

    Common stockholder voting rights would get diluted, but the consolidated common stock price could rise, given that you'd eliminate the arbitrage opportunity between TDS/TDS-S. Currently, common stockholder voting rights aren't even relevant since the Carlson family has voting control over the company via Series A shares. Even though it seems like common stockholders are "giving up" rights on paper, they never had control over the company to begin with so it should be a pretty easy "sacrifice" to make.

    Share consolidation seems like a good idea to me, even from the perspective of TDS common stockholders. I'm tired of seeing the stock undervalued, and I wouldn't mind taking steps to unlock value, be it through M&A, spin-off or other transaction. What do you guys think?

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