[plasmid_boy]

At times like this I usually would try to inject some humor, but I am busy working so I can't come up anything funny.
Anyway, I was checking the SP and saw an pair of "inverted double D" and a CJ.

Ok, back to work. Have a good afternoon guys.

[cjcampbell]

At times like this I usually would try to inject some humor, but I am busy working so I can't come up anything funny.
Anyway, I was checking the SP and saw an pair of "inverted double D" and a CJ.

Ok, back to work. Have a good afternoon guys.

Like golf balls in a pair of socks

[howarmat]

Looks like a week vacation this time for one of our members. Carry on.

[acdne]

Fairfax can pull out of the $9 deal.

Sure, but then why even make an announcement if you're going to pull out less than a week later? Sure they could pull out based on something that comes up during the due diligence period, but then so could Blackberry.

When all the numbers are released on Friday, the market could be more discouraged that Fairfax will find financing at $9 per share, further driving down the SP. It is a possibility you need to consider. The last thing BBRY shareholders need to be doing is groupthink.

You were talking about Fairfax lowering its offer based on Friday's results, not the share price dropping. I think everyone here understands pretty well how much Blackberry share prices can swing after earnings.

[greggebhardt]

Looks like a week vacation this time for one of our members. Carry on.

This is a test! Oh good, I thought it was me for a second!

[greggebhardt]

WoW!

I think that was a little over the top

[jrwb6e]

You were talking about Fairfax lowering its offer based on Friday's results, not the share price dropping. I think everyone here understands pretty well how much Blackberry share prices can swing after earnings.

It's implied when the market knows about BBRY's true financial state, Fairfax can back out of the offer and renegotiate a lower buyout price as a "good deal."

[the_sleuth]

BBRY is an event driven stock now. TA will not work in this case. TA will have as much predictive powers as looking at the end trails of a goat.

[greggebhardt]

It's implied when the market knows about BBRY's true financial state, Fairfax can back out of the offer and renegotiate a lower buyout price as a "good deal."

The stockholders would still have to approve a new lower offer but if they have no other offers . . . what choice would they have.

[jrwb6e]

BBRY is an event driven stock now. TA will not work in this case. TA will have as much predictive powers as looking at the end trails of a goat.

Who said anything about TA?

[take99]

Isn't it getting crowded there under the bridge?

[the_sleuth]

My comments were not directed at you. But anyone trying to evaluate BBRY using charts.

Who said anything about TA?

[acdne]

It's implied when the market knows about BBRY's true financial state, Fairfax can back out of the offer and renegotiate a lower buyout price as a "good deal."

Why would shareholders vote yes on a Fairfax bid between $6 and $7 (as you said) if that's where the share price was anyway? Unless you're claiming the share price is going to drop to the $5 dollar range after earnings, in which case sure that's possible but so is Lenovo offering $17 per share and free ice cream.

[ron4540]

Is his outstanding tentative offer adding about $2.50 to the stock price in the market? Otherwise, might this be at $5.50 by now? Trading around cash?

[lcjr]

Ok gang, it's about that time for me to say farewell to the thread. I have really enjoyed this thread and CB as a whole and can certainly vouch for it's addictiveness. lol. But I sold my BBRY shares and don't plan to reinvest unless BB goes strictly software and takes a year's break (go private) so the media gets off it's back. I really enjoyed spending time and getting to know you guys and wish you all the best of luck in your future endevours. For those that wish to stay in contact with me, you know where to find me. Thanks also goes out to all the MODS who certainly have their hands full with their job, and they do it well. GL to all!

[fin2007]

The stockholders would still have to approve a new lower offer but if they have no other offers . . . what choice would they have.

if they replace the CxOs/cut half empls, and start from scratch, the share price would possible go to 15+ next year.

Just check BBY, former CEO bid at 24, and nobody believe the CEO could get the deal and the share price dropped to 13.

Look at what is BBY price right now, almost $40. from $13 to $40 in 6 months after the offer expired in Feb. 2013.

[plasmid_boy]

Ok gang, it's about that time for me to say farewell to the thread. GL to all!

I still owe you a bottle of chocolate wine. PM me so that I can send you when it is done.

[peter9477]

The stockholders would still have to approve a new lower offer but if they have no other offers . . . what choice would they have.

The would have exactly two choices in such a case. Yay, or nay.

[greggebhardt]

See you later lcjr. Sorry I kinda turned sour towards the end but I have no regreats and if I stopped one person from investing or got them to sell before "this", It was worth it.

I wish you the best

[peter9477]

Why would shareholders vote yes on a Fairfax bid between $6 and $7 (as you said) if that's where the share price was anyway? Unless you're claiming the share price is going to drop to the $5 dollar range after earnings, in which case sure that's possible but so is Lenovo offering $17 per share and free ice cream.

Free ice cream?! I'll vote in favour of that bid!

[Bilaal]

You know things are bad when users are pointing the finger at Morgan. If BBRY went up to even $20, everyone would have been calling him a god and all sorts.

[m0de25]

this guy Watsa isn't fit to wash Warren Buffett's jock strap.

Wait, you aren't, like, the 'real' Gekko? Are you? Where do you keep *your* billions?

[Bilaal]

Ok gang, it's about that time for me to say farewell to the thread. I have really enjoyed this thread and CB as a whole and can certainly vouch for it's addictiveness. lol. But I sold my BBRY shares and don't plan to reinvest unless BB goes strictly software and takes a year's break (go private) so the media gets off it's back. I really enjoyed spending time and getting to know you guys and wish you all the best of luck in your future endevours. For those that wish to stay in contact with me, you know where to find me. Thanks also goes out to all the MODS who certainly have their hands full with their job, and they do it well. GL to all!

Good luck in the future, my friend! Sadly, we never saw that $100 nor the party. Do you have Twitter by any chance? We can stay in touch, hopefully @bilaalsaghir

[JLagoon]

All the best, LC.

Sent from my BlackBerry 9900 using Tapatalk

[Gekko]

Dynegy

Takeover battles
On August 13, 2010, the Blackstone Group announced plans to purchase Dynegy for US$4.7 billion. As part of the deal, NRG Energy would acquire four natural gas plants in California and Maine for US$1.36 Billion.[77] Seneca Capital, Dynegy's largest shareholder, fought the purchase in a proxy fight.[78] Dynegy investor Carl Icahn also promised a proxy battle, arguing that Blackstone Group's offer was too low. Icahn raised his stake in Dynegy to 12.9 percent in preparation for the shareholder fight.[79] Seneca Capital nominated former railroad executive E. Hunter Harrison and former energy company executive Jeff D. Hunter for the Dynegy board of directors, challenging Bruce Williamson and David Biegler (a Williamson ally).[80]
A series of maneuvers followed. Dynegy executives said the offer was a good one, as the deal would give Dynegy access to lines of credit which would enable it to refinance and restructure its debt. With energy prices at cyclical lows, the company said it lacked the resources to do so and that its debt burden was destabilizing. Blackstone Group initially said it would not offer more than US$4.50 per share,[81] but then revised its offer later that day to US$5.00 a share.[82] Worried that it did not have enough shareholder support to accept the Blackstone Group offer, Dynegy proposed postponing its shareholder meeting a few days to November 23,[83] but postponement did not occur. Legal counsel advised that Delaware law (under which Dynegy was incorporated) considered a postponement a new meeting, and that would require notifying shareholders (again) and giving at least 20 days' notice. Furthermore, Dynegy's proxy rules did not make it clear that a proxy remained in effect in the event of a postponement (which could lead to lawsuits). Legal counsel also believed that Dynegy management would be forced refile resolution with shareholders and resolicit votes, which would delay a meeting until early 2011.[84] During the shareholder meeting, management's fears proved accurate. On November 19, Dynegy was forced to recess its shareholder meeting in an attempt to garner more support for the Blackstone bid. (Dynegy was unable to adjourn the meeting because its bylaws did not clearly provide for adjournment to another date, and because it was unclear that adjournment could occur without a shareholder vote—a vote the board felt it would lose.)[84] During the four-day recess, Dynegy executives said the company would continue to solicit a takeover even if the Blackstone Group bid failed. On November 23, 2010, Dynegy management and Blackstone agreed to call off the takeover after it became clear there was not enough support for the US$5.00 a share bid.[85]
On December 15, 2010, Icahn offered a US$5.50 a share cash bid for Dynegy.[86] Dynegy's board asked for other bids, but none emerged.[87] But Icahn, too, found little support among shareholders. He extended his offer by two weeks on January 25, 2011.[88] That same day, Seneca Capital said it would not even entertain a US$6.00 a share bid.[89] Dynegy's board urged shareholders to accept the Icahn bid, or risk bankruptcy.[90] But by mid-February, even those investors willing to accept the Icahn bid had rescinded these offers. Icahn extended his offer by few days.[91] The Icahn bid, too, collapsed.
On February 20, 2011, Bruce Williamson resigned as Dynegy's chairman, and announced he would step down as chief executive officer on March 11. Chief financial officer Holli C. Nichols also said she would resign as chief financial officer on March 11 as well. Board member Thomas W. Elward was named interim chairman, and Robert C. Flexon was appointed interim president and chief executive officer.[92][93] Harrison was elected to the board of directors. Also elected to the board were Vincent J. Intrieri, Senior Managing Director of Icahn Capital, and Samuel J. Merksamer, an investment analyst for Icahn Capital.[94]

2012 bankruptcy

The takeover bids all came after one of Dynegy's largest subsidiaries filed for bankruptcy. On November 7, 2011 Dynegy Holdings, the largest of Dynegy Inc.'s four subsidiaries, filed for Chapter 11 bankruptcy protection.[95]
The bankruptcy was a novel one. Dynegy had structured itself so that Dynegy Inc. (the holding company) had little debt. Nearly all the debt was held by its subsidiary, Dynegy Holdings, which also guaranteed debt for the operating divisions. Dynegy Inc. created three operating divisions: the natural gas group (GasCo), the coal group (CoalCo), and a group for all other businesses (known as "the stub group"). GasCo and CoalCo were structured so that they would be little affected by any bankruptcy filing by either Dynegy Inc. or Dynegy Holdings. Part of the structure meant that few of the natural GasCo's and CoalCo's dividends were given to Dynegy Holdings. To separate Dynegy Holdings from Dynegy Inc., Dynegy Holdings was transformed from a corporation into a limited liability company (LLC). This legal maneuver took advantage of a Delaware Supreme Court ruling which made it difficult for creditors to sue an LLC's board of directors for failing to uphold their fiduciary duty. Finally, GasCo and CoalCo sold themselves to Dynegy Inc., which left Dynegy Holdings holding US$1.25 billion in debt but without the ability to seize the assets of GasCo and CoalCo in the event of a default. Under the structure adopted by Dynegy Inc., the company could meet its debt obligations to Dynegy Holdings by paying cash or by forgiving debt. This provided an incentive for Dynegy Inc. to withhold payment and force Dynegy Holdings to declare bankruptcy (thereby reducing the value of the debt and making it easier to pay off).[96]

Dynegy - Wikipedia, the free encyclopedia