That actually sounds like something they'd do....
Of course that would impact the full dilution, with Liberty still getting their 40% of the common. My numbers in this case would take full dilution up to about 7.6BB. With Liberty's 40% being about 3.04BB -- and the other 9.9% being about 740MM (roughly).
740MM more shares to Liberty for $530MM worth of debt, would be equviolent to about $0.71/share, as converted.
--------
Do you guys think the FCC would get involved?
One sat company buying another sat company.
Homer, can you please help me understand this?
What are the standstill restrictions that "cease to apply after two years"? Can you please offer some clarity on this? I want to know when and how they can take a controlling stake and if they could partner with another larger holder or 2 before the three year period is up. I'm also curious about the change of control debt covenants. Could Liberty and another partner or partners swoop in and buy SIRI on the cheap and merge it with DirecTV? Since Liberty owns a large stake in DirecTV, it would be like selling SIRI to themselves......
http://investor.sirius.com/secfiling...=930413-09-841
"The Purchaser has agreed not to acquire more than 49.9% of our outstanding common stock for three years. Certain of the standstill restrictions will cease to apply after two years."
Homer, true, I know this. I discount this fact as relevant. As you can see by my supposed timing of the purchase, admittion to this would not be helpful to the BK scare agenda.(If they acquired the shares during the huge drop under .12 cents, then they could "legally" acquire them later. I mean why wouldnt they have bought shares when it went under .15 cents? They would be crazy not too. But of course they cant do that during all what was going on.
Last edited by relmor2003; 04-01-2009 at 02:19 AM.
Homer, do you know to what extent the SEC filing on acquiring the shares must state details of how they acquired them, where, and how much they paid? As Liberty, cant they just put this transaction in a section that could mask this information? Basically Homer, I will respect that its impossible if it is indeed impossible to hide this information. There has to be a way for companies to hide certain details. For instance, on a banks balance sheet, you dont see how much money they make shorting gold, what you do see though is how much they made on "commodities". It just says that, no break down. So is there a similar way for maybe Liberty to hide this transaction?
Last edited by relmor2003; 04-01-2009 at 02:31 AM.