RE:RE:RE:RE:RE:34.9 shares bought back at $4.30.. Yeah Borne2run, you are completely right... They must have spread their tender according to the price they purchased...
But that also implies that they probably have tendered a portion of their shares above 4.3$ also...
So, who knows how much they have left to unload... Could be 25% to 50% of their 14M+ shares, for all we know.
Say they have tendered 77.2% (Best case scenario) and gained 5% on those shares... I don't understand how the tax dividend offset by capital loss would be benificial to them...Care to elabore?
From my memory... Since the auction was started, shares of AIM have not traded MUCH under 4.1$ (probably 98% of the volume was above that price)... So suppose CS's stake was purchased at 4.15$ (but in reality, could be much closer to 4.2$)... That's 3.6% return on 77.2% shares (suppose it's 14.5M shares)... Now if they dump 22.8% at say an average of 3.9$ quick and simple math would be:
11.2M shares for 15c return = 1 680 000M$ in dividend gain?
3.3M shares for 25c loss = 825 000M$ capital loss
All in all, yes they would be up 855 000$, but I fail to understand how the taxation as dividend would help maximize the returns.
Also, the above scenario would really be the best case scenario for them... I mean...Suppose they only managed to tender 50% and have to dump at under 3.9$ average, they would come out as losers...
Honestly, it's hard to imagine why would would purchase so many shares (14.5M shares) when the auction couldn't possibly carry more than 30-40M shares (35M in reality)... Sure Middleman would not participate, but did they imagine that the rest of the shareholders wouldn't participate as well???
Anyways, it's definitely a win for Middleman...there is no doubt about that... I wouldn't be surprised to see him show up in the next few days and start accumulating again as this seems like a real opportunity now...
Did anyone do a quick calculation of the intrinsic book value now???