LONGS, DO YOU KNOW WHAT *SEVERELY* DILUTIVE MEANS?
No shares were issued.
Warrants ( options ) to convert to shares were issued. But Fed will have to pay at Strike price of warrants which is not disclosed. ie, Fed will have to pay to convert warrants to shares at the conversion price. in meantime, AIG get to use $85 Billion loan
if they receive 79.9 perchent of the company than it is not a LOAN. it is a buyout, takeover or theft. for a contract to be legal both side have to gain something in the deal....paying the money back and giving away the company is not equal exchange.
everyone keeps reading the same news release. and there is little information in that release.
dude. you mean to tell me we have to pay back the "LOAN" at 3x the rate and give away 80% of the company.
Dude, let me give you a line of credit for 10% of your assets, i will charge you triple the rate and when you pay me back i will own 80% of everything you own. I think if this were the deal, AIG should have gone BK.