<<UBid has market cap of 325m based on Friday's close. MALL owns 80% of UBID. MALL's maket cap is 220m based on Friday's close.
MALL current market cap = MALL market cap before UBID's IPO + UBID market cap x 0.8
Right now MALL has less market cap than UBID. The number doesn't seem right to me. Could anyone give me teh reason? Thanks. >>
What is everyones damage here? I'm sorry to be so crude but I just don't see what the problem is with the math.
CCI doesn't own anything! Those shares are to be distributed to MALL shareholders and CCI isn't any richer for holding them now. You may as well say CCI is holding them in trust. They are not theirs to do with what they please. UBID shares are not an asset to CCI they are a future asset for MALL shareholders. MALL is not going to track UBID at .80 * UBID + 10 (for MALL). Anyone with brains would not buy MALL if that were the case. Why buy at that rate? You would gain nothing on distribution. MALL would fall like a rock on that date and you'd be at even money. MALL will fall closer to its true valuation every day and will crash to that number the day after the distribution date is announced. Chances are very good that the record date has already passed so buying MALL now will not assure UBID shares.
If you own a house that you are under contract to give away in 6 months you certainly can't use the value of that to secure a loan based on your net worth if the bank knows you won't have the house in 6 months. Hence the falling price of MALL...duh...