An interesting article in the NewYorkTimes today. An interesting tactic has been employed in a recent takeover where a hedge fund obtained controlling stake without holding any economic stake in the company. Apparently Perry Corp, a hedge fund having a controlling stake in King Pharma which was subject to a takeover bid by Mylan Labs has obtained controlling stake in Mylan by means of a complex swap transaction with Bear Sterns and Goldman Sachs. They seem to have bought the shares while making GS and BS to sell the same stake short - and removing risk for both parties through a swap. Cool eh :D
Article: http://www.nytimes.com/2004/12/02/business/02place.html
No comments:
Post a Comment