Ambac: Dialing for Dollars

Mar. 7.08 | About: Ambac Financial (AMBC)

When I first heard that Ambac was going to offer shares to the public, as the centerpiece of its lifesaver, my first thought was, “But who will buy it?”

Then I thought of P.T. Barnum and figured my knee-jerk was silly.

Now I’m hearing from several hedge funds that have been cold-called by brokers trying to get them to buy into the deal. “CSFB has called me numerous times,” said one. “I told my partner to hang up. And we just heard from an account that said they got circled AND asked if they want more.”

No doubt the deal will get done. But so much for rumors of this being a strong deal.