Warren Buffett the very icon and dean of the America's trust in the
stock market and our economic process whose example has been a beacon
of achievement and trust in the system. Is it possible that even Warren
Buffett has clay feet, stooping to the very actions whose cynicism and
manipulative enterprise has made many so wary of a structure that
rewards the few at the cost of the many?
I don't know, but an
extraordinary set of circumstances have come to pass in the past few
days of stark stock trading, coincidences that cannot but leave one
wondering whether willful manipulation was at play.
Buffett is sitting on a gain today from his investment
in The Dow Chemical Company (NYSE: DOW) when he came in with $3 billion
to assist Dow to acquire Rohm & Haas for $18.8 billion in 2009. He
effectively became the single largest shareholder in the larger Dow
Chemical Company after acquiring 3,000,000 shares of Series A Cumulative
Convertible Perpetual Preferred Stock in Dow Chemical Company. Under
certain conditions, each preferred share is convertible into 24.201
shares of Dow common stock, but the preferred share comes with dividends
at a rate of 8.5 percent per year. Beginning in April 2014, if Dow's
common stock price exceeds $53.72 then Dow can elect to convert the Dow
preferred shares into common stock if its shares traded above $53.72 for
any 20 trading days in a consecutive 30-day window. MORE
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