As Winnick himself once said, "...someday they'll be writing books about this (how Global Crossing was structured)."
Found on RB GX thread:
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Exerpt from "Individual Investor" article dated 6/18/01, copied and posted on Yahoo. I have no comment on this article:
Global's Winnick: Shady Past?
by: peterson3091 (56/M/Jimminy Creek, OK) 07/18/01 01:18 pm
Msg: 208353 of 208362
"...Although not many people know Winnick, he is famous in Hollywood circles for both his philanthropic and his investment flair. Some may even remember that this modern day P.T. Barnum, once dubbed "Hollywood's Richest Man" is connected to another famous highflier -- none other than convicted felon, former junk bond king Michael Milken.
While at investment firm Drexel Lambert, Winnick shared an office with Milken, who is now barred for life from conducting any further business in the investment world.
Winnick himself may have narrowly escaped being indicted along with Milken, although there wasn't enough evidence that this "dynamic duo" shared enough operational information to bring charges against the latter.
Milken's fraudulant bond trading cost Americans billions of dollars in the 1980s.
Winnick, at the helm of broadband telecommunications giant Global Crossing, Ltd., most recently profited by essentially shorting shares in his own company through a complex investment pairing commonly known as an "cashless collar", whereby he would profit enormously if his company's stock were to fall....which it has of late, creating millions of dollars in investment profits for the billionare Winnick.
While no one can guess what Winnick's next move will be, but some speculate that having cashed in on Global Crossing thrice (on the IPO, by cashing out at the peak, and with the collar), he is setting his sights on the Hollywood entertainment industry.
Wherever the dashing Winnick invests next, you can be sure that he will make enormous profits by structuring a no-lose deal for himself. However, if Drexel Lambert and Global Crossing are any examples, individual investors who follow this pied-piper's tune will reap little but capital losses for themselves." |
