I think the time has finally come to say goodbye to Washington Mutual. I am one of the few it seems on this website that actually likes banking with them. Down to $1.80 in afterhours, they can only go so low. They have been extremely good to me, still hoping they pull through this mess. Gooo WM!
My gf has money there, told here to take it out even though it is under 100k, just to avoid any complications. I hope they can make a deal, but after the market digests Lehman, i think they are really going to zero in on WM and AIG.
Here is what I am thinking. Pros Texas Pacific Group invest 7B in Washington back in April. I think that is 50% dilution at that point. Also TPG founder join WM board. You have to tell me what other financial firm has smart PE invested in and goes bankrupt. Cons If WM needs a single dime from outside right now, it is dead. So........? I don't know, but for PE guys like TPG, it is really hard for me to discard their action.
I going to hold on to my 10,000+ shares and hope J.P. Morgan will decide to take them. I average $4 in them ..... just gambling. Stosh
If the Company engages in certain transactions, such as an issuance or sale of more than $500 million of common stock or other equity-linked securities (such as securities that are convertible into, exchangeable or exercisable for, or otherwise linked to the Company's common stock) or if there occurs a fundamental change in the ownership of the Company (such as a consolidation, merger, liquidation, or sale of all, or substantially all, the Company's assets) within 18 months from the closing date of the equity issuance, TPG Investors would, in the event that the effective price of a future transaction or fundamental change is less than $8.75 per share, receive from the Company either cash or shares of the Company's common stock and a reduction in the effective per share exercise price of any outstanding warrants (the "Price Protection Feature"). The Price Protection Feature also applies, with similar terms, to certain of the Other Investors who also agreed to the above described transfer restrictions on their shares, for those events which occur within 9 months of the closing date. Upon the occurrence of a triggering event, for each share of common stock subject to the Price Protection Feature (including those resulting from the exercise of warrants), investors would receive an amount equal to the difference between what the investor paid to acquire the stock and the effective per share price of the event that triggered the Price Protection Feature. In addition, the per share exercise price of any outstanding warrants would be reduced to the same effective per share price of the triggering event. The Price Protection Feature is recognized as a derivative and is recorded in other liabilities on the Consolidated Statements of Financial Condition with changes in fair value recognized in earnings. Check out this section in WM 10Q. If I understand this "Price Protection Feature" WM signed with TPG. If someone buy WM for $0 dollar, TPG will get full 7.2B back from WM first. It is going to be hard for anyone to buy WM.
Check out this section in WM 10Q. If I understand this "Price Protection Feature" WM signed with TPG. If someone buy WM for $0 dollar, TPG will get full 7.2B back from WM first. It is going to be hard for anyone to buy WM. [/B][/QUOTE] Well, TPG has their ass protected, they may also be the reason why JPM may not conclude a deal for WM.