Under the new plan, the company will buy out the bulk of the funds' holdings at $21.75 per share and exchange the remainder for new shares at a ratio of 1.22 of the new stock per each share of existing stock. The initial proposal had offered $27.50 per share and a 1.24-to-one exchange on the remainder.
Reduces funds' voting rights
The plan aims to
The initial recapitalization, announced in April, was challenged in court by several shareholders, who filed suits claiming the plan unfairly benefitted the Wallace Funds and company directors and would burden the company with additional debt. The company has settlement agreements in principle with plaintiffs in three of the four pending suits.
The new plan will be put to a vote at a special shareholders meeting to be announced. The funds have agreed to vote in favor.