Goldman should/may have offered to hedge an all stock deal like that -
the details will not be public. Any large position of shares like that
should have a short against them until the lockup breaks - if the
bankruptcy occurred during the lock-up, a judge has the power/duty to
reverse any transaction so close to a bankruptcy (US law - L&H are in
Europe, so ymmv) (01)
rule of thumb: have a personal financial adviser from a competing firm
in addition to the firm doing the deal(Goldman in this case) - one
will keep the other honest. At a minimum, get enough cash up front to
pay lawyers if it all goes south. (02)
An all stock deal may have had favorable tax treatment* - again,
details. *there was a time you stuff that into a Roth... etc etc (03)
you know the code wasn't simple - don't think the deal was any less so (04)
I'm not a lawyer or financial adviser and this list is for ontologies
- so if anyone wants to chat about an M&A ontology, I'm interested. or
ethics... (05)
On Sun, Jul 22, 2012 at 5:16 PM, Obrst, Leo J. <lobrst@xxxxxxxxx> wrote:
> I guess I should have tacked on that sarcastic ;).
>
> -----Original Message-----
> From: ontolog-forum-bounces@xxxxxxxxxxxxxxxx
>[mailto:ontolog-forum-bounces@xxxxxxxxxxxxxxxx] On Behalf Of Ron Wheeler
> Sent: Sunday, July 22, 2012 7:59 PM
> To: ontolog-forum@xxxxxxxxxxxxxxxx
> Subject: Re: [ontolog-forum] The $580 Million Black Hole
>
> On 22/07/2012 4:53 PM, Obrst, Leo J. wrote:
>> And what we need is less regulation, right? To unleash the job-makers.
>
> They will make jobs for lawyers and Asians (and I don't mean the ones here)!
>
>> Thanks,
>> Leo
>>
>> -----Original Message-----
>> From: ontolog-forum-bounces@xxxxxxxxxxxxxxxx
>[mailto:ontolog-forum-bounces@xxxxxxxxxxxxxxxx] On Behalf Of John F Sowa
>> Sent: Sunday, July 22, 2012 4:46 PM
>> To: ontolog-forum@xxxxxxxxxxxxxxxx
>> Subject: Re: [ontolog-forum] The $580 Million Black Hole
>>
>> On 7/22/2012 3:10 PM, Chris Menzel wrote:
>>> Granted, they sold at the height of dot-com optimism and exuberance, but
>>> I have to say I cannot understand how anyone could consider a complete
>>> no-cash stock option buyout.
>> I agree. But as we have seen, lots of supposedly savvy people were
>> taken in by Bernie Madoff and similar people.
>>
>> In this case, the adviser from Goldman Sachs told them to take the
>> no-cash option from L & H. But at the same time, GS decided not to
>> invest in L & H stock themselves.
>>
>> In ancient times, there was a subject called "Business Ethics".
>> But ethical has been redefined as anything that is not illegal. (06)
you need to research ancient times better. (07)
>>
>> And legal now means anything you can pay the politicians to approve.
>>
>> John
>>
John - have a better Monday - get outside, it's a beautiful summer - relax (08)
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