WaMu, TPG deal stokes controversy

Washington Mutual pitched its deal with private equity giant TPG in April as a way to heal the troubled thrift. But for some critics, the deal was way too sweet for David Bonderman, who joined the WaMu board as part of the package, according to the New York Times. WaMu sold them 176 million shares at a price way below market; it also sold 20,000 preferred shares with a low conversion price. And then there were the warrants, also with a very low conversion price, all of which adds up to dilution in a major way. The problem is that the deal also carries some terms that would prove punitive if shareholders were to reject it, including some special dividends with high interest. Some shareholders are up in arms.

For more:
- here's the New York Times article

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