A happier ending for Calpine investors?

What does a retired commercial painter from Ohio have in common with a billionaire New York private equity chief? They both think they got a raw deal in the Calpine bankruptcy.

philip_falcone Philip Falcone: NRG bid “warrants” serious consideration.
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Bob Strouse.

Ok, maybe Harbinger Capital head Philip Falcone didn’t do so bad: His company owns about 24 percent of the recently-emerged-from-bankruptcy-Calpine and has seen a nice bump up in the price since then.
But Harbinger was still one of the biggest pre-bankruptcy shareholders and owner of many of the warrants (the right to buy a share of stock) issued at a price well above the price the new Calpine stock started trading. The other folks that own the warrants are a number of small shareholders, like Bob Strouse, the above-mentioned retired painter.
NRG Energy’s recently publicized bid to takeover Calpine in an all-stock deal could have some good news for those warrant-holders.
First, the news helped push Calpine’s stock price up to $23 Thursday, which is closer to the price ($23.88) at which those warrants can be exercised.
Second, NRG CEO David Crane’s letter to Calpine outlining their proposal included an interesting paragraph:

We also believe we can structure a proposal that provides some value to your previous shareholders who own the warrants expiring this August, but would like to discuss with you the nature of such a proposal.

The company isn’t saying what is meant by that. Obviously if the stock price rose to $23.88 or above that would be useful to warrant holders, but this seems to imply something else.

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