MGP-pa tender offer is for $25 without any interest. It's trading at $30 on the news. Should I sell it there? or is that indicating a second higher offer and/or that they won't get the 66%?
I sent subscribers a sell alert when MPG-PA broke $30. After more analysis I sent another sell recc at $28 and another one tonight.
If you keep MPG-PA and they don't raise the offer, you could end up owning a preferred issue for a private company. WTH gives some good examples of that where problems resulted. BPO is public, but the entity doing the buyout will be private. Many of the rights of a preferred issue are relative to the common stock. You can't pay a dividend on the common unless the pref gets paid first - but this is meaningless if there is no common stock. Eliminating the common stock effectively results in less rights even if the rights don't change.
That's the short version of what I sent to subscribers anyway.
Based on what I read in DP's newsletter about the company being acquired by a 'new holding company of BPO. I would be afraid of a cram down, like what happened with Prime Group Realty Trust and Five Mile Capital. Once they get 2/3 of the preferred they can do what ever they want to the rest of the preferred holders. I don't currently own any shares of MPG, but I for sure would sell at least half of what I owned if not more to minimize the risk of getting screwed.
mpg-pa is the cumulative preferred issue for the REIT mpg (Maguire Properties). I'm using the yahoo ticker symbol which is mpg-pa since we're posting in yahoo. MPG-A is also often used as Peter pointed out. Etrade uses mpg.pr.a and there are other variations.
mpg-pa is a watch list issue in my newsletter the Panick Value Research report which covers many microcap distressed debt and preferred stock issues including issues like FBS-PA, HGUBP, OSBCP, IBCPO, MHR-PE, SSRAP, DORLN, DORLL, GRH-PC, MILL-PC, GST-PA and many others. I also do email alerts on breaking news and trading opportunities for the sector. The newsletter also has a few speculative picks and micro cap equity picks like DRL. Some recent microcap picks like GST have done well lately. Some of the Panick Value 10 picks (the high yield issues) that had big runs have included LUTHP, GST-PA and MHR-PR which was added as a pick a few days ago.
If you're interested in this area you can email me for a sample newsletter copy. My yahoo adddress is mrpanick