BV,
>>I can't imagine the majority of BLSW shareholders are too pleased about the terms; nothing like a fast growing upstart getting bought out by a major player while shareholders lose invested capital.<<
I live in the Philadelphia area where BLSE is headquartered. You are correct about the second offering. However, most the the original investors still hold much of their original shares (pre-IPO) and the original shareholders probably received a stock split prior to the IPO - the usual perk for private investors.
I bought this summer, above todays "negative premium". Also, one the Merrill Lynch holders (don't remember which one) is weighted 20% BLSW and in order to improve it, they needed to remove BLSW.
I wonder if Merrill approached HP, since they had a large block of stock and suggested BLSW - which IMO opinion is a great company, caught in the spring techwreck, definitely oversold and not well known in the investment community. IMO their earnings tell their story. XML is relative new technology and there are very few public companies. I am sure HWP realized what a steal they were getting. I also doubt they expected their shares to drop the amount they have in recent weeks. It would have been nice if they had written in a price protection clause, but they did not.
This is a good move for Bluestone's technology. Small new software companies are having a difficult time in this market with their shares dropping so low. They needed the higher PPS to expand, i.e., mergers and acquisitions. Bluestone IMO was now limited by the share drop.
I was so glad to hear the news on CNBC. After holding this for several months and seeing it fall further, I was worried it would get cut more in another market tank. Now I will have lots more HWP (which I was planning to sell this week) and I won't have to worry about BLSW anymore (even with the loss). I bet this deal was done when HP was above $120.
I am glad for the few BLSW people a know. Hope you did not lose money, or if so not too much. Hopefully HWP will come in with good numbers on 11/15 and send their PPS up. Good Luck.
Merry |
