Posted on 01/31/2002 4:04:38 PM PST by Bayou City
Global Crossing Ltd.
CASE INFORMATION
Summary: According to a Press Release dated July 27, 2001 the complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriter Defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Global Crossing shares issued in connection with the Global Crossing IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Global Crossing shares to those customers in the Global Crossing IPO in exchange for which the customers agreed to purchase additional Global Crossing shares in the aftermarket at pre-determined prices.
The rest is a 27 page PDF document....following is part of a sentence on page 3 item 6... In the Offering, pursuant to the Prospectus, Global Crossing and certain selling shareholders issued to the investing public 21,000,000 shares of common stock at a price of $19 per share... Link Here For Entire Doc
Didn't Terry McAuliffe say that he made his windfall during the IPO...Hmmmmmm, I wonder if there is any way of finding out who the "certain selling shareholders" were.
HMMMMM.....velly interesting.....velly, velly interesting.
Is there an outhouse near? I smell something terrible....
Use this simple formula:
np = v
where
n = number of shares purchsed
p = price per share
v = investment value
DNC Terry invested $100,000 so
np = $100,000
The stock split in ’99 so DNC Terry’s shares doubled (2n). He sold his stock before it reached its peak price of $64. Let’s be generous, and assume DNC Terry sold at the peak price:
2n x $64 = $18,000,000
or
128n = $18,000,000
so
n = 140,625 shares
and since
np = $100,000
we calculate
p = .711111111
In English, DNC Terry bought 140,625 shares at .71 cents per share for a stock that was offered to the public at $8 per share. This means DNC Terry had a profit of over a million dollars when the stock opened. But according to DNC Terry, he bought and sold stock just like everyone else.
Excellent point - no one has brought this up yet.
Good thing I'm not a broker or anything, LOL.
ps...don't tell anyone, but I learned what "IPO" stands for by reading a Danielle Steel novel...lol!!!
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