Globalstar Trades Under Amazon’s $90 Bid With Confusing Deal Math
Globalstar shares were lower midday Monday, staying under the headline $90-a-share cash option in the Amazon.com buyout. Amazon shares also dropped, taking a toll on the stock part of the deal. Globalstar was at $83.31, off 1.1%. Amazon traded at $264.18, down 2.4%. This is important now because the deal is not a pure cash offer. Globalstar holders can choose $90 in cash or 0.3210 Amazon shares for each Globalstar share, but the shares are capped at $90 in value. Cash elections are limited to 40% of Globalstar shares. If more shareholders want cash, proration will scale it back.