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

RE:RE:RE:RE:Application to increase normal course issuer bid

[BlueCollar51]

BlueCollar51 wrote:

d_trump wrote: The original NCIB limit was the lesser of 4.1M shares and $5M, so in reality the old limit was about 900,000 shares.  Under the amendment they have done away with the $5M cap.   Still unlikely to need it but maybe they just wanted more flexibility.

Something doesn’t add up.
 
They still had lots of room to buy shares on the NCIB before it expires on Oct 23 2015.
 
Unless I missed it the NCIB still expires on Oct 23 2015 which is in abt. 7 weeks.
 
Why do they feel they need to double the amount of shares that they could buy under the existing NCIB with no $ limit for a 7 week program?
 
The other question that comes to mind is;
 
Does it make sense to issue DRIP shares at a discount with one hand and buy some of them back at market price with the other hand probably with borrowed money?
 
As Always; Do Your Own Due Diligence; It’s Your Money !!

PS; The only thing that I can think of is that possibly they are going to purchase a Large Block of shares from someone. SNCF perhaps?

As Always; Do Your Own Due Diligence; It’s Your Money !!