"I have thought along the same lines as you about why not make an announcement refuting speculation and it is easy to come to your conclusion that they can not refute something that is true .."
The lack of statements or corrections from SGH is telling.
Journalists often receive one bit of information and speculate about the rest to complete the story.
It's difficult for a company to reply. To refute the speculative bit just confirms the rest of the story.
The Stephen Bartholomeusz article about a possible pre-arranged administration is probably the exception to this.
Seems more likely to me this was a leak from someone in the debt syndicate.
They probably wanted to send out a message saying that if they didn't get what they wanted from a recapitalisation, they had a "nuclear option" available - a brutal pre-arranged administration.
Given the current register, I think they may have been wasting their time trying to convey the message though ..
SGH Price at posting:
22.5¢ Sentiment: None Disclosure: Not Held
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