Tuesday, April 14, 2009

On The Citi Exchange Offer Repricing

Posted by Tyler Durden at 11:39 AM
Interesting note out of BofA:

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11 comments:

Anonymous said...

Might want to sell this little 'bama speach rally if you're not in.

April 14, 2009 at 11:42 AM
Anonymous said...

so if they change the conv ratio, some hedgies are ruined right?

April 14, 2009 at 12:03 PM
weill of pain said...

really nice vise grip ain't it?

April 14, 2009 at 12:31 PM
Anonymous said...

TD, are you going to get all giddy when the market turns your way?

Maybe posting a Britney TMZ story or something?

April 14, 2009 at 1:22 PM
Anonymous said...

Ok so the USG makes them or approves... who then takes part in TALF or any other program???

April 14, 2009 at 2:07 PM
Anonymous said...

On page 29 of the the prospectus as of 3/19
"the number of shares of common stock offered in the exchange offer is fixed and will not be adjusted"

April 14, 2009 at 3:20 PM
Anonymous said...

GoldmanSachs666 is a dis-info site put up by Goldman, to tell us all the obvious facts, that we already know, thereby distracting us from the real conspiracy of GS crashing the market in 08!
Here is how I see it.
1. GS shorts the ABX(subprime) in 07. Makes a Billion or 2. Sends a ripple in the markets.
2. GS men at the Exchanges raise margin requirements forcing massive liquidation in JULy 07, not to mention cornering the oil market.
3. GS men at the SEC raise margin in 08, lower regulation increasingly over entire tenure.
4. There man Hank Paulson took Lehman in the other room, executation style. That really got things rolling (downhill)
5. Then, GS influence at Mood'yS(warren buffet) slashed AIG rating forcing them to find Billlions overnigth,
6.Then Hank Pauslon shows up with his $700 Billion ransome note. After stock markets crash around the world for 10 days, congress gives the big five banks their money.
7. Jim Cramer, former partner of GS, after watching the market crash for 10 days, tells America to sell everything. If we see a rally this year, you know Cramer is in on it
8. Rubin was a trojan horse on Citi's Board, encouraging them to get long and heavy in realestate.
9. AIG and Citi were made fall guys from the beginning, "to big to fail" was the plot
10. It's possible that GS even inflitrated Freddie and Fannie. It's obvious IndyMAc was a front to push liars loans.

April 14, 2009 at 3:31 PM
Anonymous said...

On page 29 of the the prospectus as of 3/19
"the number of shares of common stock offered in the exchange offer is fixed and will not be adjusted"

Thats what it says, but its a PRELIMINARY prospectus. On the cover it says its not complete and it may change. They are not bound by whats in a preliminary prospectus, any more than an issuer is bound by indicated pricing in a preliminary prospectus for any other type of offering (where final pricing is often different from the preliminary).

April 14, 2009 at 4:12 PM
Anonymous said...

Good point above. And that quote does not reference the RATIO, only the shares.

In any case , a C short is hard to come by and costs two arms & a leg in carry.

April 14, 2009 at 8:05 PM
Anonymous said...

If the previous comments are correct ,then the preliminary prospectus is completely without any meaning at all.Why did C not state the exchange ratio would be somewhere between 3 and 7.307? I have never read a prospectus for an offering that was so exact as to the pricing i.e. 7.307692 shares and stated that the number of shares would be fixed and not subject to change.
What has happened in C is clearly a massive short squeeze which has nothing to do with any delay or change of the terms of the prospectus.I have brokerage accounts at 3 different firms,one of which is a professional account.In past weeks it was hard but possible to borrow stock (at about a 100% loan rate)The last two days it has been impossible to locate any stock to borrow.The current situation is similiar to two tired takeover deals.The stub pricing which could be somewhat inferred from the pricing of the options and never was higher than the original deal.With the preferred at 19.30 and the stock at 3.94 the breakeven exchange ratio is 4.90 or is it.Citigroup could set the exchange ratio at 4.90. Of course no one can borrow stock so what meaning is the 3.94 price and the resulting exchange ratio.What I am saying is that any change in the exchange ratio based on the current manipulated stock price is absurd,since it based upon massive covering by shorts unable to borrow stock and will fall quickly once this covering stops

April 14, 2009 at 10:02 PM
Anonymous said...

Leave it up Goldman.First they manipulate their stock price up.Then they issue $5 billion at 123.Then Blackrock comes out and states that much of profit is nonrecurring due to Aig covering. I am sure that what GS did was legal,but this offering is one of the worse in recent memory.The situation with Wfc is not too dissimiliar.Come out with much higher than expected earnings,but increase charges very little in an economy with unemployment above %11 and taxes going up rapidly.Wfc also fails to state much of the fees come from refinancing which is basically a nonrecurring item.Do not be surprised if both Jpm both report higher than expected results and sell off immediately

April 14, 2009 at 10:18 PM

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