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  "docSlug": "15874954effa",
  "documentTitle": "XPO Logistics, Inc. (XPO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-12-13 00:00:00",
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  "pageNumber": 21,
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  "notes": "Uses a two-part table to contrast the bank's perspective vs the shareholder's perspective on a specific financial transaction.",
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      "kind": "callout",
      "text": "No acquisition ever occurred, and XPO sold stock at a significant discount to the market",
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      "text": "incremental share dilution: +2.5 million",
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      "kind": "paragraph",
      "text": "\"In July 2017, the Company completed a registered underwritten offering of 11 million shares of its common stock at a public offering price of $60.50 per share, plus up to an additional 1.65 million shares of its common stock pursuant to an option granted to the underwriters to purchase additional shares of the Company's common stock directly from the Company (the “Offering”). Of the 11 million shares of common stock, 5 million shares were offered directly by the Company and 6 million shares were offered in connection with forward sale agreements (the “Forward Sale Agreements”)\"",
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      "kind": "paragraph",
      "text": "The proxy statement also illuminates the fact that prior equity awards were certified by a condition that \"[XPO's] Stock Price at $60 or above for 20 consecutive days prior to April 2, 2018\". The $60 price objective is oddly similar to the forward equity sales price of $58.50 between XPO and JPM / Morgan Stanley in July 2017. Given our earlier conclusions that XPO is heavily dependent on external financing, this creates the appearance of preferential dealing between XPO and its bankers.",
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      "kind": "paragraph",
      "text": "XPO 8-K: \"On July 25, 2018, the Company settled each of the Forward Sale Agreements with the applicable Forward Counterparty, as a result of which the Company issued 6,000,000 shares of its common stock in the aggregate and received aggregate net cash proceeds equal to approximately $351 million. Consistent with the Company's strategy to grow its business in part through acquisitions, the Company entered into the Forward Sale\"",
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      "text": "In July 2017, the Company completed a registered underwritten offering of 11 million shares of its common stock at a public offering price of $60.50 per share, plus up to an additional 1.65 million shares of its common stock pursuant to an option granted to the underwriters to purchase additional shares of the Company's common stock directly from the Company (the “Offering”). Of the 11 million shares of common stock, 5 million shares were offered directly by the Company and 6 million shares were offered in connection with forward sale agreements (the “Forward Sale Agreements”) — XPO 8-K",
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      "text": "1) Assumes a 2.5% discount to the closing price of $101.3",
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      "text": "Comparison table showing Bank perspective vs Shareholder perspective on Forward Sale settlement",
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      "kind": "title",
      "text": "Evidence To Suggest XPO Beholden To The Banks' Interests Ahead of Shareholders",
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