Hybrids now offer the corporate finance holy grail: a lower cost of capital and lower tax burden.
IPOs are meant to be sold.
We may indeed be poised for a pullback in share prices, and maybe these firms will lead the way down, but I really think the whole options argument is a red herring.
Now we see what happens when the environment turns hostile; when blockbusters get some competition; and when growth doesn’t materialize: a slow, agonizing surrender of market value. Indeed, they’ve been grinding their stockholders to death for the past 5 or 6 years.
Deals sometimes aren’t fair. And even when they are, one has little faith in fairness opinions because they’re prepared by the same investment bankers who brokered the deal or have some other vested interest in its outcome.