So today i heard a rumor about buyouts and the SEC does not let companies buy out other companies for much less than book value. After searching the SEC, I got extremely tired (literally each link you click has 500 pages of info and there are about 70 links when you search words like "buyout, book value, rules" and other stuff like that. So thought i would come here and see if anyone has any info on that. It seems like there would be a rule like that because if there wasnt, a company could sell its self and all its assets to another company for a buck and all the top guys would just buy shares of the next company and watch their value double overnight while ruining all the current shareholders. BSC book value as of last quarter was over 80 dollars per share. Although we have no clue of their books and with their writedowns last quarter giving them a loss of 800 million, lets up that and say they lost 2.5 billion this quarter (i just threw that number out of the air cause it was high and i dont think they lost that much) and are going to report that on monday. Book value would still be well over 60 per share. But i guess is Im trying to find out if the rumor is true (which it seems like it would be to protect shareholders) Does JPM or whoever else that wants to buy them have to pay a certain amount around book value of the company? Also BSC has said over and over that it was a liquidity problem they have, not a credit one. Seems like overreaction when you hear the news say BSC ran out of cash and regular joes just figure No cash= broke when thats not the case.