MasterCard board makes moves on shares
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- April
- 10
MasterCard Inc., the Purchase-based credit card giant, plans to allow the financial institutions that own shares of its Class B common stock to sell them earlier than originally planned.
About 41 percent of the company’s outstanding common stock is Class B. The company’s current certificate of incorporation allows Class B shareholders to convert their shares into Class A shares after May 31, 2010, the fourth anniversary of MasterCard’s initial public offering. Holders of the Class A shares can then sell them anytime. The current rules also give MasterCard first right of refusal on the shares.
MasterCard proposed to its board of directors an amendment that removes its right of first refusal and allows Class B stock to convert to Class A before the 2010 date. The directors OK’d the amendment today and approved the conversion of up to 13.4 million shares of Class B stock into Class A stock.
In addition, the board said it would repurchase up to $500 million Class A shares.
This entry was posted
on Tuesday, April 10th, 2007 at 4:55 pm by Julie Moran Alterio.
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