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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: Nikole Wollerstein who wrote (1524)	9/26/1999 11:18:00 PM
From: Richard Barron	Read Replies (2) \| Respond to of 2561

There may be a play in the senior preferreds of Walden("S"). It seems that they will get a 10% coupon (based on what price?) as well as a put option at 25 in 5-1/2 years, which is about 47% above the current price. Thus, if Olympus doesn't totally run the company in the ground, and the preferred come out whole in 5-1/2 years, they will get about 100% return in 5-1/2 years including the coupons? I don't know if this is accurate, but that is a pretty hefty return on something of higher quality than extreme junk. Worth looking into. If the preferred stockholders reject the deal, the $2.36 dividend will remain intact. here's the wording in a press release. If the two classes of perpetual preferred stock of Walden approve the transaction, each holder will receive a new private security which will include a 10% coupon and a put option granting the holder the right to receive $25.00 per share beginning 5 1/2 years after completion of the transaction. If either class does not approve the transaction, both classes will retain their current rights. NOTE: Walden management will conduct a conference call to discuss the proposed transaction on Monday, September 27, 1999 at 10:00 a.m. Eastern time.