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Who's buying BSC?



March 18, 2008 – Comments (2)

I have little experience in projecting the non-fundamental reasons why things happen as they do, as with BSC being so far above its $2 fire sale price.

I've seen two reasons, shareholders thinking the pot might be sweetened and bond holders who want the deal to go through.  Think of it as buying more insurance perhaps... 

2 Comments – Post Your Own

#1) On March 18, 2008 at 4:50 PM, mandrake66 (74.25) wrote:

Anyone who's buying it should really just go to a casino instead.

That said, on a down day yesterday in which most financials went down, JPM went up. The market seemed to be viewing it's acquisition price as pretty sweet. If so, it's possible the price will go up, but it will likely take another bidder to drive it. It's hard to imagine who it would be, especially when the Fed has blessed this deal, but the Fed only cares about avoiding a crisis. It couldn't care less who the acquirer is so long as they're solvent.

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#2) On March 18, 2008 at 4:56 PM, mandrake66 (74.25) wrote:

Also see Fortune blog post which I got courtesy of GTRINVESTOR's blog.

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