My prediction. Based on what we know, WMI will buy out an existing (top notch Blackstone endorsed) company for cash and % of future profits. That company must be top notch with solid management and currently profitable as Davis said. (maybe a regional bank?) The new company (merger) will be 100% pure profit for the first $6B. Imagine what this share price would do? That's how things will unfold. Obvious. Something is brewing as we speak the way it sounds. Be patient. Could be a week, a month, or a year or more. My guess is a month or so and we will know some details. Patient longs will be rewarded.
Hmmm, I predicted they would initially go after a regional bank, and now the Marin bank rumor comes out. It makes sense, though I don't take too much stock in penny stock rumor mills...however, it is intriguing and could be the real deal. There could have been a leak about this in the last month which would have explained the run-up on big volume that occurred. It is also odd that the stock did not sell off on the lack of news at the SM. That was telling. Let's see if this starts to take off next week and volume comes back in...
This deal is complicated..as it involves two very important facets; 1) Status of the NOL's and 2) what seat the Hedgies want to sit in..and as far as Blackstone, they will make money on this deal and many others to follow, as it may be an acqusition minded company, that "buys out" the targets instead of merging if the NOL's are in jeopardy. No matter which way, Blackstone will have the best going forward plans for the entity..
WMIH must try to buy a company that is very profitable and a lot of revenue to have problems with the IRS approval. Also I wonder how much dilution is allowed if WMIH will acquire a bigger company than itself without causing a change of ownership violation.