Pershing Square Activist Presentation Deck
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A Revised Proposal for Creating Value
at McDonald's
Our Initial Proposal called for...
(1)
Step 1:
Step 2:
Step 3:
Step 4:
Review of Our Initial Proposal
McOpCo to be organized as an independent entity
■ Signs "arm's-length" rent and franchise agreements with McDonald's
IPO of 65% of McOpCo
Issue $14.7bn of financing secured against real estate
■ Implies approximately $9.7bn of incremental debt
Assumes $6.35bn of net debt on
12/31/05 at consolidated McDonald's
of which $1.35 bn of net debt is
allocated to McOpCo and $5.0 bn of
net debt allocated to Brand
McDonald's.
McOpCo is deconsolidated and transparent financials are released to investors
Final Revised Proposal.ppt
Use Debt financing and IPO proceeds to
■ Refinance all of the existing net debt (approximately $5bn ) at Brand
McDonald's (¹)
Repurchase shares and pay transaction fees and expenses
Our Initial Proposal is available on the internet at
http://www.valueinvestingcongress.com/Final-Pres.pdf
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