>>> dkoobs@dkoobs.com 05/13/05 10:36 am >>>
>If I am reading this correctly (and that is a big IF) it seems that MSD believes
>that the RedHat share price will rise soon. Otherwise, why would they trade $100M in
>debt for $40M worth of equity?
You got it. The fact of the matter is that the 100m in today's numbers is worth 40m. So it *could* be as the article points out that MSD bought it to hedge a short sale (convertible arbitrage) where MSD would ultimately want the stock to decrease to make a significant chunk of cash. Who knows. Bottom line is everyone is making it out to be Dell is making a significant investment in RH when it's really Dell's personal investment company is trying to make MORE money. It's quite interesting how the press will blow a simple event into something that it is not. Even more interesting that MSNBC appears to be the FIRST to pick it up even if it was nearly 10 days after the filing was made.
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