Finova ( FNV) - How low will it go Message Board

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Non-Tech : Finova ( FNV) - How low will it go

FNV 186.63

-1.2%

Oct 31 9:30 AM EST

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To: Softechie who wrote (73)	11/15/2000 1:30:29 PM
From: Daniel Shaffer	Read Replies (1) of 82

New York Times Article There was an excellent NYT article on Finova and Leucadia yesterday. See it at: nytimes.com According to the article, "The preliminary agreement with Leucadia would give the investment firm control of Finova..." The article describes Leucadia National Corporation as, "a financial holding company considered one of the shrewdest investors in troubled companies." At one point in this "must read" article, it says, "Finova's long-suffering shareholders [that's us] have the option of holding on to some value by participating in a $150 million rights offering. Leucadia has agreed to purchase at least $100 million of that amount, if shareholders do not come forward." At another point it states that "Leucadia could end up converting its preferred stock into as much as 192 million shares." Given that Finova has only 61.3 million shares outstanding, a Merrill Lynch analysist, Michael Hughes, noted, "dilution will be breathtaking". I suppose a diluted something is better than an undiluted nothing. What are your thoughts about this new development?

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