Mosaic at this point,see's it to be, in their own best interest, to keep the share price low, teach the trust a painful lesson of what greed will get you. Can or may also do share buy back seeing how they were handed a gift by the Russians,the shares very likly would never have fallen this low on their own. But then the Russians handed them a gift and Mosaic is happy to take advantage of said gift!!!
MOS cannot buy the Trust shares or open market shares until after 11/26/13. At that time, MOS is under no obligation to buy the Class A shares from the Trust. They could start buying shares on the open market instead. However, they'll likley negotiate with the Trust first.
Very smart comment and post. Mosaic is sitting on a lot of cash and they are obligated to buy shares from the trust in November of this year. It would help their EPS if the shares are as low as possible.
The company doesn't even have the financing to buy the shares yet. At this rate, by the time they get the financing they are going to be paying thorough the nose for a bond offering that isn't going to even help their earnings and be offset by added interest expenses...very ineffective management for waiting around like this. Rates were 1.5% now they are 3%....keep waiting and they will be 4 or 5%....morons.
Look for MOS to buy only the first tranche of 43M shares in November. At the current price, they could use cash with no financing. If business and prices pick up over the next 2 years, they may be able to use mostly cash to buy the 2nd tranche in November 2014 and 3rd tranche in November 2015 depending on where the stock price is at the time. If they issue debt, the higher interest rate should be somewhat offset by the reduced dividend payments due to a lower number of shares.