101. Their stock prices have run up during the bull market, making it possible for them to buy banks for stock without diluting the earnings of existing shareholders.
102. This vastly dilutes the ownership stake of existing shareholders.
103. Those who buy in later from existing shareholders will not receive the benefit.
104. Those sales come at a price for existing shareholders, whose holdings are diluted.
105. To be sure, the news remains grim for existing shareholders, who typically receive little or nothing after a bankruptcy filing.
106. Under such poison pills, or shareholder-rights plans, existing shareholders get the right to buy more shares at a reduced cost.
107. Vickerman said the existing shareholders will dilute equally at the time of the initial public offering.
108. When a stock trades ex-dividend, it means existing shareholders will be able to sell the stock and still receive the next dividend payout.
109. Whether or not a better plan for existing shareholders could be financed if Perelman did not have control has not been clear.
110. While that would dilute existing shareholders, they would then have the votes to blck the bid.