As a shareholder you would theoretically 'share' in whatever remuneration the company received in the transaction, in this case preferred equity which includes entitlement to a share in Frontpoint profits for a period of five years.....
As the company repositions itself to thrive amid the new regulatory environment these moves should ultimately benefit shareholders in the long term.
That said it would appear that there will not be much in the way of a profit from this deal since they paid $400M for it in '06 and currently value it at $350M, so perhaps what you will be sharing in is a loss or maybe they make that up over time with the PFD/profit sharing and it becomes a net zero transaction.
"A source inside the company told us that FrontPoint partners should expect to buy the fund from the bank for about half of $450 million, the price Morgan Stanley paid when they bought the fund back in 2006."
Just another example of what a disaster Mack has been for our stock. Kinda makes me pine for Purcell.