If Washington Mutual Inc. shareholders are annoyed by the coming dilution of their equity as a result of the $7 billion investment by a TPG-led consortium, then they should take comfort that it might have been worse had management accepted J.P. Morgan Chase & Co.'s low-ball buyout offer.
The Wall Street Journal is reporting that WaMu shot down a roughly $8 per share offer from J.P. Morgan, a price that was lower than its 52-week low of $8.72 the stock hit on March 17. The TPG deal, which entails selling 176 million of new common shares at $8.75 -- a steep discount to its $11.77 Tuesday closing price -- will dilute existing shareholders by nearly half, but it's probably preferable to accepting a low-ball offer. - George White
If Washington Mutual Inc. shareholders are annoyed by the coming dilution of their equity as a result of the $7 billion investment by a TPG-led consortium, then they should take comfort that it might have been worse had management accepted J.P. Morgan Chase & Co.'s low-ball buyout offer. 
