Friday, May 15, 2009

CanWest's 10 vote shares need to be turned into 1 vote common shares

Note this allows both CGS shareholders and CGS debt holders to make a fortune when the Canadian dollar increases and goes to par and beyond.

CGS debt holders need to be served that CGS one vote shareholders are in fact CanWest's equity owners, ahead of the 10 vote shares. In all negotiations CGS one vote shares, and CGS small shareholders, deserve a place at the table.

Stock market equity counts one vote shares equity, before ten vote shares. It does matter and noted that, in past balance sheets shareholder equity contributed from one vote shares trumps the ten vote shares.

Public companies like this that have high interest rate debt, can exchange shares valued at a before-crash-share-value to pay down interest. CanWest has various debts that the interest rates can be reduced to 5 per cent, and pay the extra interest with shares valued at 5 dollars. Share-interest arrangement only works a normal common share public company structure, meaning 10 vote share structure is not acceptable and must stop. Fair and honest newspapers have supporters.

Asper value when CGS shares valued at 5 dollars is half a billion. This arrangement can make CGS.TO shares worth 10 dollars in a new generation.

No comments: