The difference is down to a settlement AMC reached with a group of shareholders who opposed its plan to issue more shares and whose lawsuit had stymied company plans to conduct a reverse 10-for-1 stock split. The settlement still needs to be approved by the presiding judge. The dispute involves AMC’s plan to convert the preferred APE shares into AMC common shares, an unusual plan that we described in early February. AMC on Monday agreed to pay its discontented shareholders with one new share of AMC common stock for every 7.5 shares of old AMC common stock they hold after the reverse 10-for-1 stock split.
According to a federal filing, AMC estimates it will have 156.26 million shares of common stock outstanding after the reverse split, down from nearly 520 million currently. The company would issue 6.92 million shares to the unhappy shareholders, giving them 4.4% of the post-split shares. The malcontents currently own nearly 10% of AMC common stock.
Florida Governor Ron DeSantis is not happy with the way that Walt Disney Co. (NYSE: DIS) punked him in a dispute over who is in charge of the Reedy Creek Improvement District that runs the municipal services at the Disney World site. Two weeks before DeSantis was to sign a new Florida law giving himself the authority to appoint the Reedy Creek board, the existing board adopted new, restrictive covenants on the board’s power.
The new covenants prevent the DeSantis board from using the Disney name without the company’s approval or using Disney characters like Mickey Mouse. The covenants are valid until “21 years after the death of the last survivor of the descendants of King Charles III, king of England living as of the date of this declaration.”
On Monday, DeSantis responded by announcing an investigation into the Reedy Creek board:
These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians. In addition, based on initial observations of counsel, the [Reedy Creek] board’s actions appear to suffer from serious legal infirmities, including, among other things, inadequate notice, lack of consideration, improper delegation of authority, and ethical violations, such as conflicts of interest and self-dealing.
At Disney’s annual shareholders’ meeting on Monday, CEO Robert Iger responded to a question about the company’s dispute with DeSantis: “Our point on this is that any action that thwarts [business] efforts simply to retaliate for a position the company took sounds not just anti-business, but it sounds anti-Florida.”
Originally published at 24/7 Wall St.
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