Folks,
I have been quiet on this deal other them my original post objecting initially to it, primarily because I wanted a chance to understand it better. I have now listened to the replay of the CC, read the press, and of course, all the posts here. I kept thinking, "there must be a pony in this pile of manure someplace" so I think I managed to maintain some measure of objectivity. However, the deal stinks any way you cut it (wild speculation about cutting shareholders into some nebulous IPO later I will toss into the waste can where such fruitless and time wasting ideas belong).
So, since this is an act of financial piracy, what then? I think Tom has a point, there very well may be an arb opportunity here assuming we can get our hackles to lie down long enough to think about it. I haven't sold SEG yet. But I am thinking about selling VERITAS and going long (more) on SEG. I think there is a very good chance for a new party bid to occur. (I know I know, Luczo scoured the earth looking for buyers....yea right). I also think there is better then even money the deal will be jeapordized by legal actions. I note with interest the outright admission by the analyst at Robbie Stephens that they are "certainly unhappy" with the deal.
One thing I will add, as soon as I am out of this, this management team will never get another dime of my money again. Ever. "J.P. Morgan, Ivan Boesky, Mike Milliken, say hello to Steve Luczo"
Tom, any thought on this one other then a simple long SEG, short VRTS?
Best,
Stitch |
