With the recent death of Helen Walton, the family announced that a "significant portion" of the Wal-Mart Stores Inc. (NYSE: WMT) stock in her estate would go to charity and be sold over a period of several years. Ms. Walton owned about 8.1% of the company's shares and their divestiture could cause a significant increase in the company's float -- the number of freely trading shares.
According to a statement released by Wal-Mart on behalf of the family, "While Helen Walton's disposition of her Wal-Mart interest will not require sales of a substantial number of Wal-Mart shares for the next several years, it is expected that Wal-Mart shares will be disposed of over time to fund charitable programs."
Members of the Walton family currently control about 40% of the company's stock, effectively limiting the control of outside investors in the management of the company. However, unlike the situation at the New York Times, the company has not been run in a way that has drawn the scrutiny of its major investors.
But here's my question: Over the years as the Walton family's share of the company declines with deaths and sales, could Wal-Mart's stagnant share price cause investors to seek strategic alternatives? Could Wal-Mart become the largest private equity buyout in history? Just a thought.
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Reader Comments (Page 1 of 1)
4-25-2007 @ 8:52PM
v harrington said...
A logical second thought is---how many grandchildren are there? If there are enough, WMT could remain closely held for quite a spell.
4-25-2007 @ 11:13PM
MIKE said...
I bought Walmart shares 13 years ago at 21.60 so although the shares have stagnated after the 2 for 1 split I can still say I made a good purchase.
4-25-2007 @ 11:12PM
MIKE said...
I bought Walmart shares 13 yearws ago at 21.60 and although they have stagnated after the 2 for 1 split I can still I made a good investment.