The mysterious investment group that sought to buy 500 million shares of Bank of America stock has withdrawn its offer.
IPIC Group Ltd., which did not name its officers and formed for the sole purpose of seeking the shares, announced in a press release Wednesday that it was terminating its offer. It cited the bank's recent downgrade from the Standard and Poors rating agency as the reason.
The group had made an offer to buy the shares for $6, a premium over a share price that closed at $5.89 on Wednesday. The all-cash deal could have been worth as much as $3 billion. It would have made IPIC the bank's largest institutional investor.
In a securities filing Tuesday, Bank of America warned shareholders not to tender their shares to the company, saying it posed "significant risks."
Wednesday, December 7, 2011
Investment group withdraws bid for 500 million BofA shares
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8 comments:
Why they bailed was because they could buy the shares then sell a bunch of in the money calls to lock in a tiny profit or break even. Then also buy an even larger couple months out put presence to knock it down and make a ton of cash as the stock sold off based on people for seeing a longer term price drop because of the put presence.
Was that English?
No, and it doesn't make financial sense either. 500 million shares = 5 million contracts. Who would buy them? Doesn't work that way in the real world.
It was a clever play by IPIC to devalue the stock by a fund that has a large short on BAC. They had no intention to close the offer. No "institutional investor" is going to take a large long position in a stock that is teetering on the drop-dead $5 mark. BAC days are numbered. SELL SELL SELL
Say good bye to 5000 high paying jobs in Charlotte regardless if George Soros could have pulled this off.
BofA stock is in the toilet. Its junk.
Better call Warren Buffet again. He will buy 500 million shares again, but he will jake you down to $3 a share.
IPIC you say?
That name rings a bell ........and it has to do with oil, insurance and shipping investment.
I can't disclose any details as I am preoccupied by wondering what a preemptive attack on Iran by the USA would do to the above ........or worse if Iran took a pot shot at a wandering USA aircraft carrier.
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