Canwest 8% noteholders debt, exchanged for shareholder equity percentage decreases, with increasing bids for blocks of Canwest stockThe expropriation math for Canwest shares, and the 2.3 percentage implied equity formula, is in error. Debt equity, should receive less shares, as bids increase the worth of blocks of Canwest shares
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The implied equity value math is in error -- if the offer for what Shaw has offered on doubles, 20 percent Canwest -- the amount paid for the 2.3% of the new Canwest, is twice as much, is oppressive to Canwest's current shareholders.
The 8% noteholders bonds (vender financing bonds) are buying 75% of Canwest; therefore the share buy-in math, equals that, when blocks of Canwest are bid up, Canwest shareholders orginal 2.3 percentage offer of ownership in the new company, increases in percent. Stock market theory 101: Double bonus for shareholders in bond share CCAA exchanges, and increasing bids for the value of those shares.
http://www.canwestglobal.com/media/viewNews.asp?NewsroomID=1192
Quote, "As noted above, holders of Canwest’s existing 177.6 million shares will receive cash payments in exchange for their shares equivalent in the aggregate to 2.3% of the implied equity value of Restructured Canwest, or approximately $11 million in aggregate."
