ikkyu2 (99.45)

Smack Back! - ALD's reply to PSEC

February 22, 2010 – Comments (0) | RELATED TICKERS: PSEC , ALD

In my last blog post, I highlighted a nearly insane letter from the head of Prospect Capital to the head of Allied Capital.  Allied is currently in the process of trying to be acquired by Ares Capital, and PSEC has put in some unsolicited bids for Allied in the form of cash plus shares in the proposed new company formed by PSEC plus ALD.

The prior letter was remarkable for its hostile tone and its careful analysis of financial factors relating to the proposals.  Two days later, ALD issued a brief rebuttal which also contained some interesting analysis:

http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100211005867&newsLang=en

Less juicy, perhaps.  But how often do we get to see the bull and bear case for a deal, presented by the CEOs who are party to the deal?  Sort of an interesting look behind the scenes at these mezzanine debt companies.