Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.