Why do many shareholders feel threatened when their companies make hybrid debt issues? Explain why Roche shareholders did not feel threatened by the 1991 Bull Spread issue

What will be an ideal response?

Many shareholders feel threatened because companies meet the demands from exercised warrants by issuing new shares. New issuance can dilute existing shareholders' earnings and voting control. Roche shareholders did not feel threatened because they knew the company would not issue new shares if the warrants were exercised.