So, as charming as Mr. Karmizan may be I seem to smell something rotten in denmark with this stock buy. On the wake of the other corporate scandals this could be the coup of all coups. Mr. Karmizan had 20 million dollars of sirius stock purchased 2 years ago purchased at 3.50 to 4 per share. so roughly 5 million shares. He is then restricted from buying for 2 years while this merger winds its way through the system and its shares take a beating. People are excited and the stock while low at 2.11 Mel still cant buy. Everyone is expecting a huge pop for share price as the merger closes and everyone will do well, except Mel. short term he would probably about break even. So how does he figure to cash in personally??
Lets think about it, hmmm. I got it, we need to refinance some debt, so we will wait untill the merger has been approved and we will make a deal to lend equity at a huge discount and flood the market with these firesale priced shares. The loyal will scream and holler for mel or howard or sirius xm to make a big purchase. Buy 2 million shares way under real market value and lower my average share price by about a dollar or so in the process. Now as the share price rises to most analysts target mel will make another 5 to 7 million per dollar rise in price.
genius and totally feasible if you ask me