Why wouldn't any company seriously consider buying DMND right now? Because the situation is a mess and no company would want to buy with the current unknowns!
"That's why a certain percentage of P&G stockholders have already agreed to have their P&G stock spun off as owners of the Pringle's asset and Pringle's debt."
I'm very surprised to hear this. I'm long PG and have not received ANY info re this deal nor have I been given the opportunity to tender some PG shares. Are you sure about this??? Why would anyone tender prematurely? How would they benefit?
Click on the "Investor Presentation" link, and go to page 5 of the presentation.
It is a merger. It is merging "Diamond Foods" with the "Pringles snack business from P&G" into "the Company".
"The Company" in the rest of the presentation is refered to as "Diamond" (not "Diamond Foods" and doesn't use their existing Diamond Foods logo, but a new one with a Pringles icon.
The company will be owned 43% be existing Diamond shareholders, and 57% by P&G shareholders.
If you missed seeing the above presentation as a shareholder, then you probably also missed the opp to be one of the P&G shareholders who will own 57%the new Diamond company.
This wasn't just Diamond buying Pringles and some debt from P&G. Shareholders of P&G are coming with the deal too. That's why Diamond doesn't need cash to make "buying" Pringles happen. It's a MERGER!!!
Thanks. I think I'm pretty fluent with the deal. I just thought it was odd that you stated that some PG shareholders have already committed to exchanging SOME of their PG shares for DMND when I haven't received any paperwork. I'm not concerned, since given the number of PG shares I hold, I probably would only get literally a few DMND shares AND since the deal is not expected to close any time soon.