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Amylin Pharmaceuticals, Inc. Message Board

  • aany23 aany23 Jun 1, 2012 7:08 PM Flag

    it's starting to make sense

    I've been scratching my head as to why the recent leaks would focus on the low bid in the bidding process rather than highlighting the highest bid in round 1. and then it hit me, the worst case scenario for the bankers is to have the stock price run above the final selling price, much in the same way morgan stanley has egg on their face for the FB price dropping below it's IPO price, Goldman and CS don't want this thing to run too high before the final bids for round 2 are in.

    for example, If they leaked a high bid of 31 in round 1 and saw the stock jump to 34 in anticipation of another 10% premium in round 2, and in return only received a high bid of 32 they would be in a very difficult position. This way they anchor the stock in the 26-28 range and can manage expectations well going into round 2 and still close with a premium

    just my 2 cents of course.

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