The TPG death spiral provision means that a takeover needs to be at ridiculous prices in order for there to be no dilution
Quote from The Kin:
This is only a rumour I've heard on other boards, but WM has until Friday to find a merger partner or the OTS will be forced to close the bank and turn it over to the FDIC.
No.. TPG has a deal that in simple term, their capital act like bond below $8.5 and act like stock above $8.5.
So, if someone buy WM at $0, they will need to pay TPG $8.5 for each share they own, which mean for a buyout price at $0, it will actually cost the buyer $7.2B.
