I hold shares of XLA, so I am hoping that Byron and Tarsala have their facts wrong. However...looking at things objectively, you cannot possibly be encouraged, enthused or confident in the rebuttal issued by XLA. There's a saying, "When in doubt, be vague." They have taken this to another level:
Xcelera Responds to Inaccurate Information Regarding
Potential Taxable Income for U.S. Shareholders
Grand Cayman, British West Indies - August 09, 2000 -- Xcelera.com Inc. (AMEX: XLA), a European Internet technology company, today responded to information being circulated in the marketplace that management believes is inaccurate and may cause confusion among its shareholders:
“Xcelera is concerned about inaccurate statements in the marketplace regarding the tax implications, if any, for U.S. shareholders surrounding the 15% strategic investment by Exodus Communications in Mirror Image Internet, Inc. The gain recognized by Xcelera on the Exodus transaction was less than $300 million, or less than $2.85 per share, rather than clearly erroneous reported estimates as high as $7.00 per share. Xcelera continues to work in the best interests of its shareholders and will do everything it can to maximize value for all shareholders.”
If you read closely, all they are really rebutting is the taxable amount ($2.85 per share vs. $7.00). They do not explicitly denounce or rebut the fact that there may be a tax bill to pay.
If Byron and Tarsala are really writing inaccurate or erroneous hit pieces on the company don't you think they would come out with stronger wording and both barrels blazing? I would think that they would vehemently deny the charges. This statement is anything but vehement. It is mild at best and seems like something that was thrown together to quickly appease shareholders.
I do not get a good feeling nor any confidence from this rebuttal.
Hoping for the best,
coach |
