Why everyone (the execs that took all the stock RSU's) really wants this tu-d to merge with Kioxia. Elliott projects $100 stock by end of 2023. I'll believe it when I see it. I just don't trust DG and his apple dumpling gang to do anything right.
https://www.prnewswire.com/news-releases/elliott-investment-management-sends-letter-to-the-board-of-western-digital-corporation-301538357.html
Per WD’s press release. $47.75 conversion price. Not $100. Yes, they get interest.
I’m not a finance person but it reads to me that WD can convert the preferred stock to common stock at $47.75 a share, plus accrued dividends (with compounding).
“ Terms of the Transaction
The preferred stock has an initial conversion price of $47.75 per share of Western Digital's stock, subject to customary anti-dilution and other adjustments. The initial conversion price of $47.75 represents a 25% premium to the volume-weighted average closing price of the common stock over the 20-day period ending on January 30, 2023, and a 44% premium to the closing price on January 4, 2023, the last trading day prior to merger rumors involving Western Digital. The preferred stock will bear a cumulative and compounding dividend at a rate of 6.25% per annum over the initial liquidation preference of $1,000.00, until the seven-year anniversary of the closing, at which time the dividend shall increase to 7.25% per annum until the ten-year anniversary of the closing, at which time the dividend shall increase to 8.25% per annum. Additional information regarding this announcement may be found in the Form 8-K.”
“ Elliot group profits regardless how WD does”
Elliot put $1B into the company and is getting $40m a year? That’s 4% return. They could do better with a CD.
Go back and reread the agreement: Elliot was granted special shares fixed at $100 each, that bear a $40,000,000+ dividend yearly, not normal WD stock. Elliot group profits regardless how WD does, just like DG.
@ilk+1nVWVXt9 It is bad, but how is it a fraud? That information is disclosed in the most important financial statements of the company and every shareholder knows it. Elliot is making a bet based on what they know, and you are free to dump your stock as you believe.
Never underestimate fraud and corruption. This stock would be delisted if anyone actually looked at earnings and half a BILLION negative cash flow!
The letter is over a year old. Is this all you have to say?