think it would be pretty safe to say that most of the sales on Friday were a reaction to the market, rather than any substantiated rational descisions. I mean, really what fundamentals have changed that could compare this company to RHG or CNP?
CNP needs to refinance $3.9bil before feb 15 in the current economic climate.
RHG Couldn't refinance all their debt at the wholesale rate which they were making profit from.
MFS only has 150mil to refinance by march, which obviously has nothing do with their current proposal set to be voted apon in April. (yes they have 1.5bil, but thats not maturing for a few years yet)
Until this last week the company has been considerd to be very well managed, and I agree that their most recent announcments seem to raise more questions than they answer, but hardly enough to justify the markets judgements.
As it stands, the fundamentals are all there, this is the same company that was valued at $6.70 last week, that just had a merger offer for half the company at $3.70 per share. Merryl Lynch just extended their interest (@$4.50ea) these kind of contendors would surely have researched their descicions more than Fridays sellers.
The greatest risk they have now is the shareholders turning their fears into a self forfilled prophecy.
MFS
mfs limited
