business spectator 'conversation piece', page-21

"The no dividend clause is there to protect the banks' interests. They will own 90.1% of CNP in 7 years time, and don't want CNP's equity to be siphoned away to share holders in the mean time."

ah, i think it more a case of the banks want cnp to pay down debts with all cash generated rather than use cash for any other purposes.... kinda makes sense to me.

"Just remember this: Conversion means intention of takover."

no, it just means banks will own more and dilute current holders. banks will offload as sson as they think their return is maximised.


"Rufrano was "conned""

no, rufrano took the only option available to save cnp - give the bank a very sweet deal.



ps. i am not short. who would be short a company that was $10 and is now 8c. the shorters are long gone, probably sitting on an island drinking cocktails.....