Market Currents
Vringo (VRNG) -12.4% to $4.60 after taking advantage of the huge run-up seen over the last two...
-
Friday, October 5, 2012, 9:24 AM ETVringo (VRNG) -12.4% to $4.60 after taking advantage of the huge run-up seen over the last two days to announce a 10.3M-share stock offering at a price of $4.35. The offering will take place on Oct. 9, the same day Vringo enters court-ordered settlement talks with Google. The IP holder claims the sale, which will yield gross proceeds of $45M, will leave it in a "position of strength" as the talks commence. (prior offering)
Other date
TECH ETFs IN FOCUS
Latest Tech Articles
This news story has 8 comments:
The $30 PPS number for Vringo now looks even harder to achieve. However with out full knowledge of the proceedings how can we investors make intelligent decisions??
My theory is that these 5 investors are the owners themselves. They currently own a minority share, and are thus vulnerable to buyout. If they sell more shares to themselves, they dilute the overall shareholder value, but I believe the 10.3M shares would put the owners at or above 50% ownership. So, they put themselves in a "position of strength" as the talks commence by having control over the company to resist a buyout, which may benefit shareholders for the option to go after other defendants. I am long(er) VRNG.
That would strengthen their negotiating position as they would be able to better resist a buyout, wouldn't it? As for the timing, they get majority stake right before the negotiations.
(free dirt with worms)