Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Henry Niman who wrote (12307)	12/8/1997 8:18:00 PM
From: Andreas Helke	Respond to of 32384

At current prices Farallon would waste about $2 per Ligand Warrant if they exercised them instead of selling the warrants and buying shares on the open market. But I don't know if it is possible to do this in a big fashion without moving the prices too much. Andreas

To: Henry Niman who wrote (12307)	12/8/1997 8:27:00 PM
From: Andrew H	Respond to of 32384

Thanks for the explanation, Henry. I think Andreas is correct that they would not want to exercise the warrants at their current premium.

To: Henry Niman who wrote (12307)	12/8/1997 11:44:00 PM
From: michael meyers	Read Replies (1) \| Respond to of 32384

Henry, thanks for this analysis of Farallon's arbitrage.... but I have one question. Why didn't we think of doing this? Sounds like Farallon out smarted us. Michael

To: Henry Niman who wrote (12307)	12/9/1997 1:09:00 AM
From: CYBERKEN	Read Replies (4) \| Respond to of 32384

<<The question is what they will now do with the 1.7 million LGNDW they have left after covering.>> Unfortunately that leaves an investor controlling 1.7mil shares (through the warrants) who isn't interested in investing in Ligand. Assuming you can't get him to read this thread and become a fan of the company, it seems like he will need to make some kind of deal with an investor to convert his profit to cash. The least likely possibility is that he'd sell off the warrants, since they are so thinly traded. Next possibility is that he converts the warrants and sells the stock. But his most desirable move would be to find some large investors to take them off his hands in the short run. Any way you slice it, there's some overhang to absorb. What do you think he will do?