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Author: macedonia384 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1182  
Subject: MWA/MWA.b Date: 10/31/2008 9:10 AM
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MWA and MWA.b shares are identical in every way, except b shares are entitled to 8 votes, where as A shares only get one. Despite this, b shares have traded a frustratingly large discount to A shares for over a year. This "anomaly" has existed for a very very long time, so normally I would say the risk is pretty high, for risk arbitrage, but this morning I read that the board has proposed a plan to merge the two share classes, in which all b share holders get A shares on a one for one basis. While this doesn't acknowledge the extra value in the voting power of b shares, b shareholders (who account for 96% of the votes) are likely so fed up with the spread they will go along with it.
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