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  • chasey195800 chasey195800 Dec 8, 2008 6:39 PM Flag

    Bloomberg: Solvent by PriceWaterhouse... LINK

    Isn't it amazing how PriceWaterhouse can issue solvency in a matter of days when we have been waiting on solvency for months??????

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    • They probably just reviewed the work done by KPMG and used their numbers. What is different is their assumptions and conclusions. The numbers wouldn't change.

    • "Isn't it amazing how PriceWaterhouse can issue solvency in a matter of days when we have been waiting on solvency for months??????"

      Solvency is something that is done close to closing, and it doesn't take that long. A solvency opinion from six months ago is useless. Think about it.

      "Don't assume Teachers is no longer interested in the deal, as it stands. The banks don't want it but who knows about the buyers."

      I'm suspecting the private equity sponsors don't want it either, but if a bona fide solvency opinion is provided, and the banks fund, they will close. Think about it. Unlike some of the conspiracy theorists here, KPMG probably would be able to make a credible case for insolvency (assuming that is their final assesment). That is to say, it may be solvent, it may not be; if it is solvent, it is probably not going to be solvent by a large margin. What buyers would wish to buy such an enterprise (given the proposed cap structure); an enterprise on the brink of insolvency one way or the other? -- hence my speculation that the PE sponsors want no part of this at this point.

      A similar thing is going on with HUN, buyer's apprasial firm says it would be insolvent, HUN's apprasial firm says it would be solvent. Guess which one the banks agreed with. Now it is in a litigation morass.

      No position, just throwing out some random comments. I'm not expecting a clean close on 12/11, nor are many others. But we'll see.

      Good luck everyone.

      • 1 Reply to mariyatrader
      • My dear longs,
        I am long, too. We are f…
        From the agreement: “the Purchaser and the Company shall have received an opinion at the Effective Time from KPMG LLP, or another nationally recognized
        valuation firm engaged by the Purchaser and agreed to by the Company”

        From BCE press release:
        “While BCE believes that PwC's work supports the Company's position, PwC has not been engaged to provide the solvency opinion required in connection with the closing of the transaction.
        The receipt at the effective time of a positive solvency opinion from KPMG remains a condition to closing. Should KPMG be unable to deliver a favorable opinion on December 11, 2008, the transaction is unlikely to proceed”

        So, KMPG is engaged by OT and agreed to by BCE. PWC is out of the picture. If OT really wants to buy BCE then OT will accept PWC’s opinion. No, they don’t.
        BCE price is at lowest level for the last 14 years! Shareholders lost 12 billions in just one day.
        We have to wait for another 2 days until the deal is officially dead. I am sure lawsuits are coming.

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