Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Z

Good post. It is always sensible to look out for what MS can do to spoil things for everyone.

In this case, though, I think we have lead underpants. Even after the dilution caused by the XCIT merger, TCI retains a substantial stake of the equity. It was c.38% before the XCIT announcement, BUT around 70% of the voting rights. It is a little difficult to explain, but TCI holds stock in a different series from the rest of us, which is convertible to "our" series of stock to establish the 38%. However, each share of the TCI series carries ten times the voting power of the other series. This is how the difference between the 38% and 70% arises.

I haven't done any calculations on the dilution effect on these golden stakes, but I would be surprised if TCI/ATT ended up with less than 50% of the voting rights - in which case MS could never obtain a controlling interest without buying AT&T, or perhaps by outbidding ATT for TCI before the deal is approved by both boards.

Outside the box is the best place to think.
John
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.