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Braskem S.A. Message Board

  • AJSutton AJSutton Apr 16, 2004 1:59 PM Flag

    WorldCon Vulture Article

    There is a nice (and very long) article in the Wall Street Journal today about the new MCI and the big vultures (not us baby vultures).

    The main point is that the big vultures are going to want to unload all that stock somehow. That's just the normal deal though. I don't have any holdings here but have a lot of Armstrong AKKWQ, which will get about a third cash and the rest new common. I expect the new common to be depressed after it is issued, so I plan to hold a while.

    Another point is that if you like the company, there may be a window of opportunity to buy the common. I don't like MCI, but I may use the cash part I get out of Armstrong to buy more common, particularly if it trades below the $30/share value estimated in the POR, which I think undevalues it.

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    • dammit...quit leaving town willya?...you're
      hurting my portfolio:)

    • From my perspective, the news is not so bad. Actually, I think it's good.

      Matlin Patterson and Silver Lake are now just like us and may end up paying the ultimate price depending on next week affidavits.

      Slim ain't going to be able to steal Embratel.

      Looks like Wcon is out of bk next week.

      And maybe, just maybe WGM will be replaced as the debtors attorney.

      On another note, Alan Greenspan said today that it's important to restore trust in the US financial markets.

      Personally, I don't think that's possible.

    • WCon vulture article. I think it explains why the stock is taking a beating today.

      Matlin and Hutchins (Silver Lake)resigned from the BOD because it appears they want to ditch their stock and don't like the rules proposed by Breeden.

      The BOD consists of 11 members. At first, the big vultures wanted to fill all 11 positions with their own candidates. Breeden vetoed their plan. Then, they said five positions. Breeden again said no. They finally, settled on four positions consisting of Matin, Hutchins, Neporent of Cerberus and a guy name Harris, a pasty of the vultures.

      The shit hit the fan when Breeden proposed that board members provide the public 2 to 14 days advanced notice of their intentions to buy or sell. MCI would announce their intentions in a press release.

      Apparently, that didn't sit too well with Matlin or Hutchins. Their investment horizon is months not years. So they quit the BOD because I think they want out and they don't want traders to know their plans in advance. That would be pretty damning.

      There are a bunch of other vultures besides Matlin and Hutchins.

      Capellas says "the telecommunication industry is going through a seismic shift which we believe plays right to MCI's advantage. No other company can match our network and our capability to help customers manage their traffic as securely and reliably."

      I agree. He forgot to mention that no other Company has almost zero net debt but I guess he doesn't want to rub salt into the wound.

      I think the baby bells in the end will get their asses cut by cable because of their their excessive debt obligations and phony pension accounting.

 
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