All Mosaic shareholders, not including Cargill, will get one share of recapitalized common stock for
All Mosaic shareholders, not including Cargill, will get one share of recapitalized common stock for every Mosaic share they own. The stock will have the same economic value as the current shares, the statement said. Cargill's 286 million shares will be converted to about 115 million shares of common stock, 60 million shares of Class A stock and 111 million shares of Class B stock. Exact share counts will be determined when the deal is completed, the companies said.
the b shares having a 10 to 1 vote of common stock going to cargill charitable trusts (11 million) and 69 million going to cargill shareholders. sounds like they will still have control. I think there is only about 45 million shares when it is all said and done.
It means the fundamentals of the company will not change. However, I bet the price an investor is willing to pay will change.
This i sprobably happening because some Cargill shareholders need to liquidate and they don't want them selling their share sto the public. It must be a large liquidation if they wanted Cargill public in order to sell their shares. So now instead we will have a large liquidation of Mosiac shares. You can bet your left nut that it will be driven down for the liquidation. Can't be good for Mosiac either way and never buy a company because they are being included in an index.
All the points are well taken. But let's look at citibank the gov't sold millions of shares and the stock did not collapse. As you say the fundamentals are still there. We will all have to see how it plays out this week. My concern is that I sell based on all of this and then a buyer steps in.