Zorrofan Posted December 27, 2010 Share Posted December 27, 2010 For those of you more familiar with SEC regulations my question is can an investment bank be used to build a stake in a company, in order to avoid having to file when you have a 5% or greater position. For example JP Morgan bought the shares of ICO from Fairfax and Ross at $7.35. Now these shares could be sold into the market slowly as prices rise but could a company like MEE use JPM to build a larger stake on the cheap before announcing a takeover? JPM could have bought a larger stake - as volume was quite large - and then turn around and sell it to MEE. JPM pockets a nice profit and MEE builds a larger stake in ICO at a price less then the ultimate takeover price. Now I am not saying that this is happening but the recent activity and rumours with MEE & ICO got me to thinking about takeovers in general and wondering if this was possible, if it is used much etc...... cheers Zorro Link to comment Share on other sites More sharing options...
Nnejad Posted December 27, 2010 Share Posted December 27, 2010 I'm pretty sure that as soon as they start coordinating, you have to consolidate their ownership in filings... at least, that's definitely true in certain situations. Link to comment Share on other sites More sharing options...
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