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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (33597)	6/21/2001 9:14:56 AM
From: G_Barr	Respond to of 42804

<<One bondholder admits that his firm has been short-selling the MRV stock, which has given him a better negotiating position by keeping the stock lower.>> Is there grounds for legal action by MRVC here? Probably. Most obvious claim would probably be market manipulation under section 10(b) of the Exchange Act. You see these cases when holders of floorless convertibles short the stock to increase the amount of stock they get. I think companies have had difficult times proving these cases and there are a number of technicalities in the law that make such suits difficult. The advantages to the holders of the convertibles in depressing the stock price is less clear here and I think it would be difficult to prove a concerted effort to put themselves in a better bargaining position for a buyout of their bonds. However, if they actually enter into such negotiations after doing this, it may be another story. Nevertheless, MRV probably wouldn't think this worth spending their time and cash on.

To: Sector Investor who wrote (33597)	6/21/2001 11:04:48 AM
From: Greg h2o	Respond to of 42804

sector, haven't had much time to respond to the "bondholder issue", but here's just a quick thought as to your question regarding the legality of the bondholders shorting the stock.... it happens all of the time. it's a pure hedge. that's one of the problems with raising money in this manner....

To: Sector Investor who wrote (33597)	6/21/2001 11:07:23 AM
From: William D. Tanner	Read Replies (2) \| Respond to of 42804

I'm to the point now that I'd derive considerably more satisfaction from burning the shorts than I would from receiving LMNE shares. I believe we should call off the distribution, the fact that LMNE is it's own publicly traded company allows it to be properly valued. I say when the IPO market improves, do the same thing with the rest of the siblings, IPO about 20% and keep the rest under the MRVC umbrella. This would allow easy sum of the parts valuation. Regards, Bill