Thursday, March 20, 2008 2 comments ++[ CLICK TO COMMENT ]++

BCE Deal Closing Delayed

One of the risks with risk arbitrage is the possiblity of deals taking longer than expected. I don't have a lot of money invested in the BCE deal and I can wait, but it was delayed yet again. It looks like the deal will now close by June 30th. Given the calamity in the debt market, the delay may be a good thing.

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2 Response to BCE Deal Closing Delayed

Anonymous
March 21, 2008 at 3:16 AM

Dear Turtle, really nice blog. I have one humungus question for you: Are you going to throttle Merrill Lynch for what they did to your baby Takefuji? Company should be renamed Take-a-bath! I'm hearing some nasty stuff about their May 2007 structured bond - like why the replacement bonds were (apparently) CDO-linked rather than the more normal T-bills in defeasance cases.
-Bankerbaiter

March 21, 2008 at 12:11 PM

BankerBaiter,

I see that you are no friend of bankers, let along Merrill Lynch bankers ;)

Well, I'm a free market guy. So even though my investment, Takefuji, got whacked, I think the fault lies with Takefuji. I'm not saying Merrill Lynch wasn't pushing a seemingly risky product, but it was up to Takefuji to make the decision on where to invest. I'm really dissapointed with Takefuji management and could care less what Merrill Lynch was doing.

The thing is... Wall Street--and the so-called sell-side bankers everywhere--sell anything and everything. If you thought snake oil salesmen dissapeared, you haven't been paying attention to the sell-side bankers ;) ... So, it's really up to the companies who buy the financial products to make the right decision. I mean, the Street right now is pushing a ton of junk bonds from the LBO deals. Given that I believe a lot of those companies are weak and now indebted, these bonds are probably going to be an unpleasent experience...

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