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Corrections Corporation of America Message Board

  • newMK newMK Mar 30, 1999 10:48 PM Flag

    r7 - re legal fees, cheap insurance and

    I'm sure you're cheering for the attorneys - they
    no doubt represent everything you love about
    America: hard work rewarded, justice done, etc. We
    shareholders certainly got our money's worth on this one,
    didn't we?

    Actually, I hope you will forward the
    article to your contact at Treasury (you know, the guy
    who told you the IRS is about to de-REIT PZN). I
    can't think of a better defense to the arm's length
    nature of the OPCO/PZN arrangements than the fact that
    the whole thing was challenged in court on that very
    issue (not a token challenge, but a formidable one
    worth $4 mil of legal effort), adjusted appropriately
    and approved by a judge. Not bad insurance for 4
    cents per share. Also, I guess Cleo, Litt and others
    will have to stop crabbing about the OPCO - the
    lawyers fixed all the problems.

    I can hear Doc on
    the stand in Tax Court, "Well, judge, I originally
    wanted to bleed the income from PZN into my pocket -
    strike that - into OPCO, not for my benefit, of course,
    but purely for tax reasons so no one would think PZN
    was getting disguised non-rental income. Then these
    hostile shareholders hired some sharp attorneys and held
    a gun to my head, forcing me to put more income
    than I planned into PZN. I really had no choice, your
    honor."

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I am as much against frivolous lawsuits, as
      anybody. The point is, this one WAS REASONABLE. You are
      obviously conveniently forgetting, that in order to shove
      this merger down the shareholders throat, Doc HAD TO
      BRIBE TWO LARGEST SHAREHOLDERS, IN ORDER TO ENSURE THE
      YES VOTE. THIS COST CCA SHAREHOLDERS MUCH MORE IN
      LOST WEALTH, THAN THE PUNY $4 MILL PAID TO THE
      LAWYERS.
      And the nature of their lawsuit, was not the possible
      tax status of PZN, but uncompensated transfer of
      wealth from a public company to private ownership,
      connected with the corporate insiders. So, let us not
      revise history, my friend. IRS would still have to rule
      on it.

 
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