According to a recent 13D filing by Paulson & Co. Inc, it was disclosed that John Paulson now controls 2,607,506 shares of SuperMedia Inc (SPMD, Financial). This represents 17.4% of all shares outstanding. SuperMedia (fromerly Idearc Media) is a spinoff of Verizon's print and online yellow pages business.
This new holding comes with a Standby Purchase Agreement. The agreement is valid for 4 years. The agreement states that if Paulson raises his stake to 20% or more of all outstanding stock, he will have the right to nominate one director to serve on SuperMedia's board. He is also limited to 45% of all stock outstanding. This information can be found in the following 13D excerpt:
Pursuant to the Standby Purchase Agreement (as defined in Item 6), Paulson, on behalf of the Funds, and the Issuer entered into a Standstill Agreement (the “Standstill Agreement”) on the Effective Date. Pursuant to the Standstill Agreement, as long as the Reporting Persons own at least 20% of the outstanding shares of the Issuer’s Common Stock, then during the term of the Standstill Agreement, Paulson will have the right to nominate one director to serve on the Issuer’s Board, Paulson’s voting on corporate matters will be limited, Paulson will be entitled to certain preemptive rights, and Paulson’s beneficial ownership of Common Stock will be limited to 45% of the issued and outstanding Common Stock of the Issuer. The Standstill Agreement has a four year term.
SuperMedia provides advertising solutions to small and medium size businesses. They offer innovative solutions that create value for its advertisers, clients and stakeholders.
John Paulson , a former mergers and acquisitions banker, established his firm as a merger arbitrage hedge fund manager, seeking to make money from situations when one public company announces plans to take over another. Merger arbitrage hedge funds primarily study equity markets, but they also research the market for credit default swaps, a form of insurance that starts paying out as soon as a credit security falls in value.
This new holding comes with a Standby Purchase Agreement. The agreement is valid for 4 years. The agreement states that if Paulson raises his stake to 20% or more of all outstanding stock, he will have the right to nominate one director to serve on SuperMedia's board. He is also limited to 45% of all stock outstanding. This information can be found in the following 13D excerpt:
Pursuant to the Standby Purchase Agreement (as defined in Item 6), Paulson, on behalf of the Funds, and the Issuer entered into a Standstill Agreement (the “Standstill Agreement”) on the Effective Date. Pursuant to the Standstill Agreement, as long as the Reporting Persons own at least 20% of the outstanding shares of the Issuer’s Common Stock, then during the term of the Standstill Agreement, Paulson will have the right to nominate one director to serve on the Issuer’s Board, Paulson’s voting on corporate matters will be limited, Paulson will be entitled to certain preemptive rights, and Paulson’s beneficial ownership of Common Stock will be limited to 45% of the issued and outstanding Common Stock of the Issuer. The Standstill Agreement has a four year term.
SuperMedia provides advertising solutions to small and medium size businesses. They offer innovative solutions that create value for its advertisers, clients and stakeholders.
John Paulson , a former mergers and acquisitions banker, established his firm as a merger arbitrage hedge fund manager, seeking to make money from situations when one public company announces plans to take over another. Merger arbitrage hedge funds primarily study equity markets, but they also research the market for credit default swaps, a form of insurance that starts paying out as soon as a credit security falls in value.
