what does this mean, respected ladies and gents: http://www.reuters.com/article/marketsNews/idUKWEN367620080131?rpc=44 are they saying that MBI is valued at 31/share? :eek: :eek: :eek:
hahahaha must be a senior preferred.... why would a bunch of pikers pay 31 a throw for a curb side special of 14 a share
It means Warburg got hosed. MBI was trading around $31 at the time the deal was struck on 12/10/07, which was a greater than 50% haircut from where the stock had been trading only a couple of months earlier.
They put out a statement about 'honouring their committments' or some such" - my guess is they have spent the intervening time trying to get out of it, but then got a call from Paulson on the eve of the downgrade explaining what it means to be a patriotic American......................... That said, I imagine there will be some attempt to buy only the Muni biz and it will probably have as many let out clauses as the other eve of disater patriotic deal BAC/CFC.