Comments on: Al-Waleed to the Citi’s Rescue Again? http://www.nakedcapitalism.com/2008/01/al-waleed-to-citis-rescue-again.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/01/al-waleed-to-citis-rescue-again.html#comment-2969 Anonymous Sat, 12 Jan 2008 09:56:00 +0000 http://www.nakedcapitalism.com/2008/01/al-waleed-to-the-citis-rescue-again/#comment-2969 it sounds like a good outcome in the short term as it makes bankruptcy more remote but for long term shareholders, this addition of capital is dilutive and should keep a lid on potential appreciation.<br/><br/>Adia has structured its participation as a mandatory convertible that will result in dilution for existing shareholders in 2010-2011.<br/><br/>It's called forward dilution aka sacrificing the future to keep a present it sounds like a good outcome in the short term as it makes bankruptcy more remote but for long term shareholders, this addition of capital is dilutive and should keep a lid on potential appreciation.

Adia has structured its participation as a mandatory convertible that will result in dilution for existing shareholders in 2010-2011.

It’s called forward dilution aka sacrificing the future to keep a present

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