Tunica you seem to believe that because CNC hired Wendt, CNC is now the equivalent of GE Capital.
Nothing could be further from the truth.
In GE Capital, Wendt enjoyed the strongest balance sheet possible. In Conseco, on the other hand, Wendt himself admits an immediate need to restructure the capital.
The fact that CNC debt is priced so low, together with a very recent report from a credit analyst that the debt should be avoided, indicates that CNC will be completely unable to refinance the debt.
Now, Wendt could sell some preferred, except for one complication: Hilbert already did that, to the tune of over $500m.
So, unlike GE Capital, Wendt is faced with: (1) A very week balance sheet; (2) An inability to refinance debt obligations which come due in the very near future; and (3) Difficulty in selling additional equity.
Regardless of this man's managerial skills, he cannot make $1,600,000,000 appear out of thin air.
As to Wendt's motivation to take on Conseco, we will find that out on Thursday when his compensation package is finally revealed (why is he so hesitant to discuss it?).
Given that he just went through a VERY expensive divorce, I think we will find that his motivation consists of hard, cold cash. |
