The company also announced that it is going to offer $150 million in new common stock, along with $150 million of convertible senior notes due in 2014. According to the company, the notes will be convertible under certain circumstances into cash, shares of JNS stock, or a combination of the two - depending on what the company chooses. The company will use the money raised and other cash to buy back as much as $400 million of the aggregate principal amount of the firm's outstanding 2011, 2012, and 2017 senior notes.
Additionally the firm announced that CEO Gary Black suddenly decided to resign. JNS will replace Black with Tim Armour -- a Janus Capital director -- on an interim basis. As if all of this wasn't enough news, a Reuters report released after the closing bell suggests that Janus was approached in the "past several months" by "multiple parties" about a takeover. The report notes that the company's "rich valuation" made it hard to cut a deal that would have added to the buyer's earnings. This is a shrewd move by the purchaser, as there are several technical hurdles for the stock to overcome. Shares of JNS currently face overhead resistance from their 10-, 20-, and 50-month moving averages - all of which have pushed the stock lower since the middle of 2008. Moreover, the stock has shed more than 50% since the turn of the century, and the assertion that any buyer will not get the value they pay when the stock is trading in the $12 region is a bit disturbing.
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