where is everyone getting the 20% from. for shareholders to only own 20% than the FED would have to own 80%....2.6billion shares x 4 = 10.4 billion shares....that is how many shares the FED would have to control to own 80% of AIG. I don't know any stock with 12 billion shares outstanding.
i read the deal as the FED would recieve 80% of the equity value of AIG in the form of warrents. AIG market cap is $10b.....so 80% of $10B is $8B. so the FED would own 45% of AIG not 80%, plus we don't know the conversion rate or price of the warrants. the warrants could have a price of $10. so that would mean 800 million new shares. 800 million shares is a big difference from 10.4 billion shares
Yeah of Course, All 20 dollar stocks beg for 85 Billion until they can sell their worthless shit.
I'm tired of the talking head idiots throwing accolades at the "valuable" assets of AIG...let's see what the final prices of these things are...I'm betting they will not seem so valuable during a forced sell.
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
Severely Dilutive? It means that you are an ass I think.
You are obviously an economic genius with your stunning predictions.
Here's a prediction for you. I predict that Wednesday will be another day that you don't get dressed and don't leave your trailer.
What a boob.