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UPS going private again.....
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<blockquote data-quote="SeniorGeek" data-source="post: 175193" data-attributes="member: 4823"><p>Because it would be bad PR to admit that the IPO was mainly a way to quickly enrich the major stockholders. If the Board that set the stock price had one day declared a value of $70, regulatory agencies would have been probing every opening. The IPO allowed the tail to wag the dog, and you can't prosecute the free market.</p><p> </p><p>Back to the question about going private again: not likely. The IPO was 109 million "B" shares that could be market traded. I think this left 90% as "A" shares which can be held only by employees and retirees. Over time, shares have been moving to publicly-traded. At the end of 2005, only 42% class "A" shares remained. To buy back 58% of the 1.08 billion shares at $70/share would require about $43 billion.</p><p> </p><p>I did not know that UPS had been publicly traded from 1929 to 1933 until I read it here. (It's on the Internet, so it must be true.) There was probably a need to finance the new air shipping service. This raises questions: </p><ul> <li data-xf-list-type="ul">Can 1999's publicly-traded stock issue rightfully be called an "<u>Initial</u> Public Offering"?</li> <li data-xf-list-type="ul">How did so many shares make the transition from "A" to "B"...and why?</li> <li data-xf-list-type="ul">Was the board thinking that 1999's stock market would be like 1929's, and they'd be able to buy back the stock at a bargain?</li> </ul></blockquote><p></p>
[QUOTE="SeniorGeek, post: 175193, member: 4823"] Because it would be bad PR to admit that the IPO was mainly a way to quickly enrich the major stockholders. If the Board that set the stock price had one day declared a value of $70, regulatory agencies would have been probing every opening. The IPO allowed the tail to wag the dog, and you can't prosecute the free market. Back to the question about going private again: not likely. The IPO was 109 million "B" shares that could be market traded. I think this left 90% as "A" shares which can be held only by employees and retirees. Over time, shares have been moving to publicly-traded. At the end of 2005, only 42% class "A" shares remained. To buy back 58% of the 1.08 billion shares at $70/share would require about $43 billion. I did not know that UPS had been publicly traded from 1929 to 1933 until I read it here. (It's on the Internet, so it must be true.) There was probably a need to finance the new air shipping service. This raises questions: [LIST] [*]Can 1999's publicly-traded stock issue rightfully be called an "[U]Initial[/U] Public Offering"? [*]How did so many shares make the transition from "A" to "B"...and why? [*]Was the board thinking that 1999's stock market would be like 1929's, and they'd be able to buy back the stock at a bargain?[/LIST] [/QUOTE]
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UPS going private again.....
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