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  • newMK newMK Dec 24, 1999 5:49 PM Flag

    is anyone here bullish

    rcarter is wrong also - Jr. Does not own OPCO. I
    just don't know where this stuff comes from (cleo?
    Litt? r7?).

    First, CCA and PZN were separate
    publicly owned companies (Doc ran both). On 1/1/99 they
    merged, and shareholders of each got stock in new PZN.
    Because new PZN wanted to be a REIT, some of its
    operations were put into two subsidiaries, wholly owned by
    PZN. The bulk of the management business was "sold" to
    a new company (OPCO) for $134MM (note). The new
    company (OPCO, now known as CCA)was formed from scratch.
    It was capitized with $16MM of cash, split between
    two PZN shareholders, a Ron Baron mutual fund and
    Sodexho. For that they each got 16% of the stock of OPCO.
    9.5% was kept by PZN. The balance of 58.5% was given
    to the following groups of people: 30% to management
    employees of OPCO (used to work for old CCA, but not
    PZN(neither Doc nor his son got any of this block); 19.1% to
    wardens and other OPCO employees (again, Doc and Jr. not
    included); 8% by management employees of New PZN (Doc
    excluded, but maybe not Jr.); 1.4% by other new PZN
    employees (not Doc or Jr.).

    I saw a list of the
    emplyees once, I thought, and I don't remember seeing Jr.
    on the list. I could be wrong. But even if he were
    on the list, it could only be for a piece of the

    I believe that the employees had to pay tax on the
    "value" of the stock they received (based on $50MM total
    value, unless it was restricted somehow). Old CCA took a
    Q4 charge for the value given to employees.

35.11Jul 29 4:02 PMEDT