Dreyer's has ended its put period--when shareholders of Dreyer's Class A Callable Puttable Common Stock
could sell up at purchase price.
Since a portion of puttable common stock is treated as equity, it is treated less like a liability than is the 100-year MRPS in the prior example, even though the puttable common stock reduces the solvency of the firm to a far greater extent.
Their example illustrates how accounting for convertible debt and puttable common stock, two economically similar financing instruments, differs under the ED.
Examples are convertible bonds and puttable common stock
Dreyer's") (NNM:DRYR) announced today that, as a result of the exercise of a put right (the "Put Right") by certain holders of Dreyer's Class A Callable Puttable Common Stock
(the "Class A Shares.
Holders of Class A Callable Puttable Common Stock
will be permitted to sell some or all of their shares to Dreyer's Holdings for $83.
Dreyer's") (NNM:DRYR) announced today that the period during which holders of shares of Dreyer's Class A Callable Puttable Common Stock
(the "Class A Shares time on January 13, 2006 (the "Expiration Time").
and its affiliates (collectively, Nestle) have filed revised preliminary materials with the Securities and Exchange Commission ("SEC") concerning the provisions set forth in Dreyer's amended and restated certificate of incorporation (the "Restated Certificate") under which holders of Dreyer's Class A Callable Puttable Common Stock
(the "Class A Shares federal securities laws, as permitted under these circumstances by the Restated Certificate.
If the Merger is completed, each stockholder (other than Nestle and its affiliates) who holds shares of the company's Common Stock at the effective date of the Merger will receive one share of Class A Callable Puttable Common Stock
of New Dreyer's for each share of the company's Common Stock.
The owners of the callable puttable common stock
had the right to require Salick Health Care to purchase their shares in October 1997 which Zeneca was required to fund.
Under the merger agreement Zeneca has the right to require Salick Health Care to purchase the outstanding so-called callable puttable common stock
875 cash, one half share of callable puttable common stock
(although no fractional shares will be issued), and a distribution of $0.