SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Loral Space & Communications

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jeff Vayda who wrote (6576)8/6/1999 12:02:00 PM
From: Lance Bredvold  Read Replies (2) of 10852
 
"1. Loral bought the shares from whom?"
I have no particular knowledge of this transaction, but I have simply assumed that additional shares (or partnership rights) would be issued in exchange for the value of Loral's guarantee. Thus the transaction would be dilutive to the partnership. This speculation led me to a question I've wanted to ask for a long time.

What is the reason that the limited partnership was formed in the first place? Why didn't all the partners just form a corporation like GSTRF with shares allotted according to their contribution. And then more shares issued to investors like me in a public offering in order to raise more cash? Alternatively, a new partner might join and be given dilutive shares for their contribution.

I just don't get the need for the intermediate legal entity.

I suspect they answered this question while I skipped class that time in grade school. L.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext