Coercive Dual Span Classsearchtermclassspan Exchange Offers

Cover Coercive Dual Span Classsearchtermclassspan Exchange Offers
Coercive Dual Span Classsearchtermclassspan Exchange Offers
Richard S Ruback
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Also, I assume that the class B shares have no claim to takeover premiums.
The number of limited voting shares in the initial public offering, U^, is: rN R \ " (x-rR)(l+A) ' ^^^^ 28 where N is the number of class A shares owned by insiders. The price of the class B shares will be: = UllAl (20) b (r(N + N, (1 + A)) • ^^^' a b Note that the number and price of class B shares are determined simultaneously.
Using numerical value from the example described in section 3, the cost of repurchasing the
...800 shares owned by outsiders is: R = (1000 - 200) ( ^S^ooo (1--1) + . 1*150) = $84, 000 The number of class B shares in the initial public offering is determined using (19) : N = . 1*200*84, 000 ^ b (10000-. L*84000)(l+. L) -^^-t-^^ The price of class B shares from (20) is: 10. 000 (l+. L) b . 1(200+954. 55(1+. D) ^ The repurchase and issue process increases the number of shares that have claims to the firm's dividends, and thereby dilutes the price of the insiders' class A shares. The per share value of the insiders' shares after the introduction of dual class equity capitalization is: p _ 10.

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