Sometimes these things work, sometimes they don't.
The recent attempt to salvage value by way of a reverse merger of non traded REIT Inland Western Retail Real Estate Trust into publicly traded shares of Retail Properties of America, Inc. (NYSE:RPAI) did not work.....so far. Perhaps the future will bring an increase in share price, but given the general overall tempo of the economy, I am not optimistic.
Here are the economic of what happened. Inland Western was initially offered at $10 per share. The IPO of RPAI fell somewhat short of the $12 range predicted, coming out at $8. As of the time of this writing, RPAI is trading at $9, which is good, but that equates to just a little over $3 for the original shares of Inland Western. Check out the terms of the offering, not all of the shares can be traded currently.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.