DD-A trades at a discount to the call price of 14% (call = $100) - 3.50% dividend
DD-B trades at a discount to the call price of 13% (call = $120) - 4.50% dividend
Company has mentioned a possible liquidation (call) of the preferred issues as part of the merger.
Take the $ and run.
If the Dow Merger decides to call the Preferreds, the call price for DD-PA ($3.50) is: $100 p/shr.
Today's price is $88.70 leaving a $11.30 upside. The decision has not been made yet.
DD-PB ($4.50) will call at $120 or $15.76 over today's price of $104.24.
After finally speaking with a shareholder rep, they email me the pertinent part of the 'Charter' dealing with Preferreds. The deal is this, IF the preferreds are called (which has not been established) the call prices will be:
DD-PA $3.50 Cum = $100 + divs currently trading at $88.70
DD-PB $4.50 Cum = $120 + divs currently trading at $104.24
That = $11.30 upside on the DD-PA and $15.76 upside on the DD-PB, if called during the Merger.
Does anybody know for certain what the call price on the Preferred A & B is?
The merger book refers to the DuPont charter wherever that is. Shareholder services has an answer machine - nobody home...........What a company!
Quantum on line lists one of the issues to have a $120 call but these are so old who knows?