GREY:LSTMF - Post by User
Comment by
alertmeippon May 30, 2015 10:17am
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Post# 23780742
RE:RE:LEG Dilemna
RE:RE:LEG DilemnaMy theory is:
1. CEO margin call and loan gaurantee by the company.
2. Activist is trying to replace the managment with a proxy fight in which the CEO's loan guarantee will likely to be brought up again and who know who will happen then. (Managment said the fact that this deal closes right at the time FrontFour was going to act is just coincidence.)
3. Majoritiy of their debt is their bank line, it needs to be reviewed every year and their 200m USD term out loan is due 2017. Only two years away.
LEG shareholders do not even get cash, they will get CPG shares which is trading at premiumn metrics.