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Biglari Holdings Inc. Message Board

  • smaycs4 smaycs4 Sep 19, 2013 2:08 PM Flag

    Multiple form 4s yesterday

    Every reporting insider exercised their rights.

    One glaring exception is Sardar himself. It appears he did not.

    So he gets a $10 million bonus and buys $3 in shares but then doesnt exercise his rights at $265 ??
    Bothersome if he isnt willing to buy at a 38% discount to market.

    Hopefully he did and they just forgot to file it or something.

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    • I wouldn't be surprised if he sold his rights rather than exercising them (although wouldn't that have triggered a filing as well?). After buying all the shares he was required to with his bonus money I could see him wanting to direct the rest of his cash elsewhere and not wanting it held up in additional shares of BH.

      Even if he believes in BH long-term, investing in it is a more complex proposition for him than it is for either of us. He can't himself move in and out of BH without spooking other investors who will wonder why he's suddenly selling after never doing so before.

    • He would be criticized if he bought before the rights offering and exercising, and you are criticizing him for buying and not exercising! I am not happy with some of the previous self dealing but I think you have give him the benefit of the doubt for not trying to increase his position in the company with the discounted rights offering.

      • 1 Reply to beyeloselhi
      • There are no rights from his most recent buy, the $3 million was post rights. But, his previously owned shares.

        And upon further review, he did indeed do so, it appears his filing was bundled with the Biglari Capital filing.

        He had 10,073 shares subject to rights and bought 2016, all he could.
        But, in all he owns 17,218. 7145 were bought after the rights offering ex date.

        All his form 4s were in his personal name. In this case, I was expecting a separate form 4 but it appears they bundled it with the Biglari Capital form 4. I should have caught this yesterday. My bad.

        Subscription Rights (right to buy) (1) $ 265 09/16/2013 X 10,073 08/27/2013 09/16/2013 Common Stock, stated value $0.50 per share 2,016 $ 0 0 D

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