STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:RE:more BS from a bunch of hooligans!!

[d_trump]

The price is negotiated by the seller and the banks.  I assume its a bought deal meaning the banks have guaranteed the deal - so they will only do this at a price that they know will be fully subscribed.  The alternative for the seller is to sell on the open market but that would push the price down huge.  STB has no say in setting the price since they have no stake in the deal.  Hence the reason there is no news release by STB.

I wouldn't be surprised if the deal is oversubscribed and if so. the share price may not take a big hit.  Also I am wondering if the hedge fund that went short may have known a large institutional shareholder was looking to sell - they may well be buying to cover on this deal.  I think they sold short around 6.20 in late May, so covering at 5.40 would be a nice profit for them.

I am fine with it - I picked up some shares the day before the x-date at 5.66 and sold half a couple days later at 5.95.  So I am in on this deal to pick up the shares that I sold.

Also I wouldn't be surprised if a lot of insiders will be in on this deal, since they have been quite active lately.

In any case this is totally out of the control of STB.