Just got my proxy statement, and I have to admit to being a bit confused. Of particular concern is this excerpt from page 17:
"The additional shares to be authorized are not subject to preemptive rights. If such shares are issued other than pro rata to all existing shareholders, the voting and ownership interest of existing shareholders to whom such shares are not issued will be diluted."
Is the proxy really saying that the board thinks it's in the best interest of shareholders to triple the authorized shares of stock, and thereby potentially dilute our shares to a third of their current voting power? Or is this sort of proposal necessary to allow JWA to split its stock up to 3:1?
first, if you own class a shares, your votes are neglible. i think what it means is that they might be in a position to use their stock for currency in a transaction. several properties could be coming on the market in light of the FTC review of the AW/PH merger.
also, they are continually granting stock options to key employees. when they grant stock to employees, we as shareholders do get proprtionaly receive more stock.