Why Don't LEH Suitors Just Buy Shares in the Open Market?

Discussion in 'Stocks' started by aeliodon, Sep 12, 2008.

  1. and you rationalize this trade because BSC got sold for 10?
     
    #11     Sep 12, 2008
  2. the talk now is that LEH is about to be in a 'three-way' with 'several interested suitors'.

    this is usually referred to in technical terms as a gangbang.

    at last word, the suitors were seen 'jockeying' for their 'asset' of choice.
     
    #12     Sep 12, 2008
  3. Market can be wrong. Market thought FNM was worth 7 right before the takeover.
     
    #13     Sep 12, 2008
  4. ElCubano

    ElCubano

    :eek: ugly.....see you in the next life Lehman...
     
    #14     Sep 12, 2008
  5. Let's face it . . .

    Dick Fuld played "poker" with LEH and he lost. He didn't finally "fold" until a day or two ago and it takes a few days for any interested "parties" to do their due-diligence.

    As a result. this might not get done over the weekend.
     
    #15     Sep 12, 2008
  6. I don't know where you get this idea that Jamie Dimon would do the BSC "deal" again for $10.

    Sources on the Street will say otherwise.
     
    #16     Sep 12, 2008
  7. Cutten

    Cutten

    Well, personally I have no edge in what corporate events might happen, so it would be pure gambling to hold over the weekend.

    I would much rather wait until any announcement, good or bad, then see if there's a potential trade there. For example in BSC, the great trade after the collapse was to actually go long on the JPM announcement. The Monday morning, BSC opened above 2 and then rallied all week and beyond, getting to above $10 per share before the revised bid.
     
    #17     Sep 12, 2008
  8. Bootsie

    Bootsie

    Except if it opens at $1.00 on Monday morning.

    seems like there's a lot of "gambling" in this stock... and little trading.

    B
     
    #18     Sep 13, 2008
  9. S2007S

    S2007S

    At this point I don't think you can value these companies. FRE and FNM are sitting as penny stocks right now, they were $70 dollar stocks worth tens of billions, today almost worthless. Do you really think someone is going to pay more than 5 bucks a share. There is no trust left within these companies anymore. The risk they took at the shareholders expense was pathetic. Every one of these firms was filled with greed. How they can be bailed out and helped out by the backing of our tax dollars and help from wallstreet is beyond me. Where is the free market.
     
    #19     Sep 13, 2008
  10. Illum

    Illum

    They want a piece, they do not want Leh. The liabilities outweigh the piece they want. It would insane to buy Leh at any price. Leh is burning, would you want to burn as well?

    The government is saying they will not back those liabilities as they did with Bear. That made the attractive parts of Bear worth it. Not the case here as of yet. So this aint gonna happen. Its not worth 3 its worth 0

    Actually the problem isn't 0, it is negative. If it was just 0, those attractive pieces might get a bid on all of Leh. It is negative.

    Look at Bac eating all the negative for an attractive business. The negative has far outweighed their purchase. They wish Countrywide was 0, it is much worse.
     
    #20     Sep 13, 2008