Timber,
CS First Boston bought heavily from 7c to 19c. The company was very misleading and decptive in my opinion with their announcement on Sept 4. Whilst details had not been finalised I understand that the basic concept was agreed upon. The company announced the following:
"It is likely that there will be a requirement for full conversion of EPS and SPARCS in advance of, and in order to facilitate, any equity recapitalisation and that the
ownership interests of BBI ordinary securityholders, and EPS holders and SPARCs holders post-conversion will be significantly diluted by the recapitalisation. The transaction mechanics, including any conversion of hybrid securities and the basis on which it would occur, have not been determined. The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and may attribute a value to those securities that is less than face value or recent trading prices. Furthermore, associated sales of assets may be at amounts lower than their current book values."
That was worded very badly and it is my opinion that it induced many BEPPA holders to sell. Why did the company not announce the following when they knew exactly what was about to happen?
"The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and in the case of BBI holders may attribute a value to those securities that is less than recent trading prices and in the case of EPS and SPARCS holders may attribute a value that is less than face value."
That statement would have informed everyone what was going on, not just a select few.
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