I'm starting to wonder if paas has the 1.5B to buy out all the mfn shareholders. If the have to issue more stock, I hope the insiders control enough stock to approve this acquisition. There's no good reason for the "regular shareholders" to dilute their stock. I don't think I've ever seen a company that's being acquired fall this far below (on a % basis) the cash buy out figure two months before the closing. Management is strangely silent -AGAIN.
To rockraider3: I must be dense. I thought there were 3 separate options for us;1. stock in paas with no cash 2. some stock and a small amount of cash or 3. we could elect to take all cash. If you read the posts, that appears to be what almost everyone is thinking. Most say, "take the cash" not options 1 or 2. What am I missing?
There is $175 million in the cash pool (from the MFN balance sheet) and 53 million shares of PAAS in the stock pool. I don't know how many more times I can say this. That is what is being used to distribute to MFN sharholders, if the transaction is to be approved.
And yes, all PAAS shareholder will be diluted.
And this really isn't a cash buyout. It's a stock buy-out, with a little cash thrown in, essentially equating to a dividend of the MFN cash to it's shareholders. It's not cash from PAAS.