MFS mfs limited

mfs relisting price oppinions...king and adams

  1. 11,407 Posts.
    Seems ABC Learning directors pulled the same trick as MFS directors King have done.

    This from an article regarding ABC:

    "The second option is that Groves needed to have the ABC shares suspended from trading so the share price could not deteriorate further and trigger margin calls against what is left of his holding."


    When MFS went into a trading halt at 99cents...and then a suspension for upto 6 weeks to buy some time...seems the reason behind it was for King and Adams to get the relisting share price over $1.80 to prevent the triggering of margin loans hanging over there heads.

    This was in the The Australian today:

    "If the talk is right, Michael King and Philip Adams -- the co-founders and both former managing directors -- have margin loans over their shares in MFS, which can be triggered if the share price falls below $1.80. King holds 32.48 million shares, or 6.9 per cent of the capital, and Adams holds 31.5 million shares, or 6.7 per cent. "

    and this on why the margin loans wern't triggered at 99 cents

    "The MFS share price actually fell to 99c on January 18 -- well below the $1.80 trigger price -- but the margin lenders may not have had sufficient time to act as the shares have not traded since then. If trading resumed there could be a risk of margin calls against the co-founders. "

    Boy King and Admas were quick to act to preserve their shares.

    But although it seems a sneaky move and in their own best interests....I personally believe they will doing everything they can prevent MFS listing anywhere near $1.80 and probably above $2.00.

    Its just my oppinion but would like some others to state what they think about a MFS relisting price and the probability of some heavy money supporting the share price on relisting way above $2.00 or these boys lose many millions of dollars.

    Also...I know its way to early to call the relisting price of MFS or even if it will relist...but just some honest oppinions based on King and Adams needing it to never fall below $1.80 and the potential for that happening on relisting.

 
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