LG Display Co., Ltd. Message Board

anonymouswizard 54 posts  |  Last Activity: Jun 23, 2016 2:10 PM Member since: Nov 15, 2001
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  • Reply to

    WMB purchase risk

    by harehau Jun 23, 2016 12:41 PM
    anonymouswizard anonymouswizard Jun 23, 2016 2:10 PM Flag

    This is a very big deal! Section 2.04 of the merger agreement states that, in the case of oversubscription of the cash offer (a near certainty), all nonelection shares will receive the all stock consideration. Since the stock is worth much less than the cash, a WMB share that can not participate in the election is screwed if the merger goes through. Buying now would be very risky. Everyone should select cash or sell to someone who can still make the election. This may also be contributing to the decline in WMB stock. Only nonelecting shares can trade

  • anonymouswizard anonymouswizard Jun 21, 2016 3:20 PM Flag

    Given the money at stake, the big boys have legal experts doing a play by play analysis. The market prices reflect their opinions. Not good for WMB. Though arguments are focused on whether ETE can break merger. Since I think merger is a bad idea, a ruling for ETE on this is not a bad thing. May be able to buy WMB cheaper if it loses the trial. Same standalone company without the baggage. So far, have heard nothing that would result in WMB paying a breakup fee. ETE is arguing that the deal is dead and it is a tax issue--not WMB's fault.

    Sentiment: Hold

  • Reply to

    So does Kelcy take the hit

    by nocashleft47 Jun 17, 2016 12:55 PM
    anonymouswizard anonymouswizard Jun 18, 2016 8:43 AM Flag

    Both companies have too much debt. Any deal change would be share swap only. Management insulated by preferred issue and GP voting control. A straight equity deal means can avoid piling on debt and, possibly, maintain the existing dividend.

    Sentiment: Sell

  • Reply to

    wsj article

    by harehau Jun 17, 2016 1:27 PM
    anonymouswizard anonymouswizard Jun 17, 2016 2:24 PM Flag

    Misleading headline: Settlement of a shareholder lawsuit regarding misleading proxy. Added more language to Proxy to settle lawsuit--regarding lack of synergies. Has nothing to do with litigation vs ETE. Can get WMB disclosure at SEC website(edgar). WMB also basically states that if merger goes through, ETE gets control of WMB and can cancel outstanding litigation.

    Sentiment: Hold

  • Reply to

    The $43.50 cash option

    by jagingerus Jun 13, 2016 5:15 PM
    anonymouswizard anonymouswizard Jun 14, 2016 10:23 AM Flag

    Reality, nobody in their right mind will select anything other than the cash option. The spread in values is too extreme at current market conditions. Everybody will select the cash option and get the mix option. That is always the case when stock prices move enough to push cash/stock values too far out of line.

    Sentiment: Hold

  • anonymouswizard by anonymouswizard Jun 10, 2016 5:51 AM Flag

    WSJ corrections section today says NO cancellation penalty on no vote--just up to $50 million of expense reimbursement to ETE.

    Sentiment: Hold

  • anonymouswizard by anonymouswizard Jun 9, 2016 4:17 PM Flag

    Content of agreement not a big deal. Requires divestment of 50% interest in a Florida pipeline and some competitive terms to interchange with another line. Big deal is that FTC proposal has 30 day comment period before it is final. Therefore, Unlikely to close before mid July since closing without final agreement would risk changes to terms after closing. Since merger deadline will pass--both sides will need to agree to an extension--or not!

    Sentiment: Hold

  • Reply to

    The WMB Board wants you to vote yes

    by pjhatbpi Jun 9, 2016 9:57 AM
    anonymouswizard anonymouswizard Jun 9, 2016 4:06 PM Flag

    ETE does have the ability to close the deal. They have a letter of commitment for the funds from their bank. They would rather not do so, but if can not get out without heavy penalty they may close which will screw all ETE and WMB shareholders. Only management will be protected by special class of preferred and management incentive giveaway of ETC shares. Voting yes is a hope that ETE finds a way out and doesn't close. Else WMB holders will be proud owners of near worthless ETC shares and $8 cash.

    Sentiment: Hold

  • Reply to

    Cash Option

    by gentlegiant85 Jun 7, 2016 9:40 AM
    anonymouswizard anonymouswizard Jun 7, 2016 2:11 PM Flag

    If the merger is approved, you will receive ETC shares whether you want them or not. Deal terms require proration. Nobody in their right mind will select the all stock option. Everyone will select cash and get the blended mix

  • Reply to

    cash option

    by marjun2129 Jun 7, 2016 9:58 AM
    anonymouswizard anonymouswizard Jun 7, 2016 2:09 PM Flag

    Structure of the deal is that everyone should chose cash option. This will cause proration in which case everyone gets the mix option. Any restructuring of the deal with no cash would require a new prospectus and new shareholder vote. So this vote for the merger is effectively a vote to receive $8 cash and some nondividend paying, nonvoting ETC shares with questionable value(A lousy choice) or stay independent and continue to collect a regular dividend from a stock with voting rights and a good dividend.

    Sentiment: Hold

  • anonymouswizard anonymouswizard Jun 7, 2016 5:38 AM Flag

    or just growing confidence in cancellation of the deal from hell. Option expiration date is after deal deadline with a small margin of error for extensions.

  • Reply to

    Hare-- thoughts on WMB election form options

    by parkridge77 Jun 6, 2016 9:54 PM
    anonymouswizard anonymouswizard Jun 7, 2016 5:35 AM Flag

    $43.50 is an illusion. Everybody should chose this. Nobody will get this. In practice everyone will get prorated mix of stock and cash due to oversubscription of cash option. If deal closes, ETC stock should plunge on elimination of the dividend prior to close. Both stocks trade at prices expecting deal failure which is likely.

    Sentiment: Hold

  • Reply to

    3 More Weeks To Go

    by blufftoncorn Jun 6, 2016 8:13 AM
    anonymouswizard anonymouswizard Jun 6, 2016 2:44 PM Flag

    Odds are merger will not close since tax matter not settled. WMB and ETE both going up in anticipation of deal failing. If deal fails, both stock likely to rise further makings puts worthless. Of course, if deal actually goes through, puts are likely to give you protection from the possible severe plunge in ETC/ETE. The fall is likely to occur on ANNOUNCEMENT of the deal closing if not sooner--not enough time to get out without losing money for anyone unprotected.

    Sentiment: Hold

  • Reply to

    WMB Dividend

    by jrkl88 Jun 3, 2016 9:18 PM
    anonymouswizard anonymouswizard Jun 4, 2016 7:49 AM Flag

    This logic makes no sense. You will vote yes because fear WMB will cut dividend. If merger takes place, ETE has stated on record in the Prospectus that dividend will be eliminated. Thus, the merger guarantees you will not get a dividend. Staying independent is likely to have a reduction in the dividend--but not a elimination unless Chesapeake(18% of revenue) deteriorates significantly

    Sentiment: Hold

  • Reply to

    ETC Shares

    by henderson5565 Jun 3, 2016 9:36 AM
    anonymouswizard anonymouswizard Jun 3, 2016 4:29 PM Flag

    Prospectus details the tax issue. WMB merged into ETC. Then ETC transfers assets to ETE. ETE's counsel refused to certify this second transfer as tax free. THIS transfer affects ETE (through their need to make whole ETC) allowing them to protest a merger without the tax opinion. They have nothing at stake in the first transfer and therefore, no ability to protest its tax status..
    "Like kind" exchanges are generally tax free. Mergers between partnerships are easy since one can swap property for partnership interests tax free. Tough part here is that WMB is a corporation and ETE is a partnership. Hence, the existence of ETC which is trying to bridge the difference with a convoluted swap Incidentaly, WMB buying ETE would be easy since corporation can create new partnership, contribute its assets and merge new shell with ETE.

    Sentiment: Hold

  • Reply to

    ETC Shares

    by henderson5565 Jun 3, 2016 9:36 AM
    anonymouswizard anonymouswizard Jun 3, 2016 1:07 PM Flag

    ETE standing to cancel the deal on failure to get a tax opinion because ETE would be harmed by the failure. Specifically, WMB assets are transfered to ETC (Corporate to corporate shell-not taxable) then from ETC to ETE(Corporate to Partnership) which is a taxable distribution to ETC. The agreement between ETE and ETC effectively requires ETE to be made whole transferring this tax cost to ETE. Yes, there would be a step up in basis, but upfront, there would be recapture and other taxes

    Sentiment: Hold

  • Reply to

    ETC Shares

    by henderson5565 Jun 3, 2016 9:36 AM
    anonymouswizard anonymouswizard Jun 3, 2016 10:11 AM Flag

    Theoretically, same as ETE with ETE assigning ETC a "contingent value right" to adjust as necessary a couple of years out. In practice, ETC is a corporation which will receive its share of cashflow, PAY CORPORATE LEVEL TAXES, and then use the remainder to pay a dividend. More convenient for tax-exempt entities that pay unrelated business income tax, but worse for individual holders. I suspect eventually the market would migrate to individuals holding ETE and pension funds and nontaxable entities holding ETC. If merger goes through as currently proposed, ETE likely to drop since prospectus states that dividend will be eliminated for a while

    Sentiment: Hold

  • anonymouswizard anonymouswizard Jun 2, 2016 1:06 PM Flag

    Proxy has legally required response. Merger agreement requires company to support the merger. WMB already faces a lawsuit that not supporting strongly enough.
    Read between the lines: No synergies, dividend will be eliminated, self dealing lawsuit against new management. Company believes merger is a bad idea but is muzzled by agreement from saying so.

    Sentiment: Hold

  • anonymouswizard anonymouswizard Jun 1, 2016 12:04 PM Flag

    Sanders needs to stay in in case Clinton gets indicted before convention. Becomes easy face saving transition. Otherwise he will endorse Clinton. Regarding ETE/WMB, price of ETE rising quicker- market seems to believe ETE either gets a better deal or walks without penalty.

    Sentiment: Sell

  • Reply to

    OT-2016 Election Patriots

    by shaasgo May 28, 2016 7:40 AM
    anonymouswizard anonymouswizard May 28, 2016 1:43 PM Flag

    Realistically, Ryan & Trump not get along. Ryan not a team player and did not help Romney much. Marco Rubio looks good on the surface but a low energy campaigner. Question is how much Hispanic vote he can bring in. Jindal is a governor, but not greatest track record. It would be nice if VP was an attack dog. Always better to let VP tear apart opposing president while presidential candidate looks presidential and above fray. Given Clinton providing so much material to attack and Trump's nature, not sure he can resist. Gingrich has great legislative experience and a history with the Clintons which would be fun to watch. Bear in mind, a VP and Presidential candidate tearing each other apart is a win for the VP--People vote for the presidential candidate not the VP. Gingrich also has excellent conservative wing credentials.
    Obviously, a woman, black or Hispanic would help but not sure a good one is available(Colin Powell, Condeleza Rice?)

    Sentiment: Hold