But he hasn't !@#$'d the preferred holders. He has voluntarily contracted, at arms length, with institutions that sold roughly 60% of the preferred to the company. And now he is doing a tender offer, that offers anyone who wants to sell the chance to get upwards of the same deal those institutions were offered.
Obviously, in fairness to you, the question remains of what happens to the remaining pfd., should EMMS get to 66.67% control of the preferred...but I can't imagine they would offer terms that are any poorer than what the big insitutions got.
On the other hand, it's quite clear that control of 2/3 of the preferred, provides the ability, legally, for Emmis to do a whole host of things to "deal" with that security (including the issuance of new forms of capital stock that make the pfd. subordinate to that new stock, among other things).
I'm pretty confident that Emmis will offer terms to the remaining shareholders that are identical to what others are getting...but I would be very skeptical about viewing the preferred stock, as a long term investment, at this point, with any significant return beyond the $15.50 or so average price that all of the shares have been going off at. Unless Emmis fails to get control of 2/3 of the shares.
Which is why I sold off my small position in the preferred yesterday morning. (If I had a larger position, I would have probably tendered my shares.)