This article was highlighted for PRO subscribers, Seeking Alpha’s service for professional investors. Find out how you can get the best content on Seeking Alpha here.
There are few things as aggravating as when companies strike sweetheart deals with large investors on favorable terms that are unavailable to existing shareholders. Warren Buffett is the king of these deals, executing several during the Financial Crisis and most recently investing $10b in Occidental Petroleum via a preferred stock that pays an 8% dividend and sits senior to the common stock. These deals are typically private placements