Blank Check IPOs (SPACS) Message Board

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Technology Stocks : Blank Check IPOs (SPACS)

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To: Glenn Petersen who wrote (2225)	2/8/2010 12:09:42 PM
From: hockey012	Read Replies (3) of 3862

Any ideas on what is happening in this deal? It seems very strange to me that the BPW common stock has dropped so much. I was expecting this to continue to climb to the 11.25 exchange price. It's possible, but it seems unlikely that the TLB volume-weighted average price to be used in the conversion calculation would drop below 8.50 in the next 2 weeks. If the deal is looking unlikely I would expect the common to act as it is. As I understand it, if the deal FAILS, BPW common shareholders will receive a cash payment of 10.00 for their shares and the SPAC would unwind. Thus, it seems there should be a 10.00 floor on BPW's price - unless there is some reason shareholder would vote it through below the $8.50 (1.3 TLB per BPW share) price collar. Does this sound correct? Also, if the deal were in trouble, we would expect to see the BPW warrants falling towards zero. Right now they are still bid above 1.00. One idea I've had is that there could be a merger arb fund that was heavily short TLB and long BPW. According to www.finviz.com, short interest was 65%! If a large fund was forced to buy in their shorts, perhaps they are also unwinding a large BPW long position. What am I missing here? Any other ideas?

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