your points are very well founded and clearly portray the risks that we still face; however, I would argue that announcing a deal is not the same thing as pricing a deal and we did not know until today where, when, or if kro would price. The market just cut a check for $320mm at a specific valuation. Thats a very different conversation than claiming a valuation on a company with a 4% float is a valid comp. It is the most recent transaction and it is a sizeable transaction. That should carry some weight in a valuation fight. The company has attempted to lowball the valuation of this business throughout the bankruptcy. First they try to sell it to huntsman for a song and when it becomes clear thy wont get away with it they cozy up to the unsecured creditors. When it becomes clear that there is significant value to the equity, the epa amazingly comes back asking for more money -- not huge money, but just enough to make it complicated for the equity to compete given the low sharecount. It sounds more like the company offered it to them than the epa asked for it. All this and equity is supposed to get out of the money warrants with a valuation of .02-.08 cents while wanlass and his cronies cut themselves 11% of newco? WTF?! At any rate, a pattern is becoming clear. They can keep playing these games and they could win, but they risk losing control of the business or completely missing the upcycle. throwing the equity a 10 bagger is nothing in the whole scheme of things. losing control of the business because they overplayed their hand would be very costly.

Gentlemen, pardon me if i digress, but I believe this rally is entirely related to the KRO offering. 8MM shares issued at $40 is a clear and sizeable datapoint on which to value pure-play titanium dioxide producers, and will certainly be used if a valuation fight is to ensue in the tronox bankruptcy. I'm sure we all have our own methods of valuing businesses, so I would urge everyone to revisit those numbers in light of the most recent indication of what the market will bear. By my math we have about 20 cents of downside from here valuing the warrants that were offered in the plan and about 25 points of upside if everything were to go our way in a valuation fight. As usual, i suspect somewhere in the middle lies the truth.

Thank you... that was a john belushi quote ;)

There's no reason for anyone to get his or her panties in a bunch. The equity is not allowed to come up with its own reorganization plan... yet. During bankruptcy there is something called "exclusivity", whereby the debtor is the only one who can formulate a plan of reorganization and market it to the various constituencies until the judge says so. The equity is always the last one to get called up from the minors. You can bet that the official equity committee is being currently consulted as all other parties are on board and given that they are an OFFICIAL committee with real standing in the court and explicit value on the balance sheet, they simply cannot be ignored. Unless the members of the committe say. "aw shucks, we was hopin y'all would throw us some scraps after dinner, but i guess that's not happenin so i'm gonna go rock in the corner and suck my thumb", this party isn't over yet. Was it over when the Germans bombed Pearl Harbor?

http://blogs.barrons.com/techtraderdaily/2009/12/23/rumors-oracle-for-citrix-hp-for-rambus-disney-for-ea/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+barrons%2Ftechtraderdaily%2Ffeed+%28BARRONS.com+Blog%3A+Tech+Trader+Daily%29&utm_content=Twitter


Briefing.com reports three big tech deals are running through the rumor mill today, with database maker Oracle (ORCL) speculated to be interested in buying $7.7 billion enterprise software maker Citrix Systems (CTXS), Hewlett-Packard (HPQ) thought to be interested in computer memory-chip designer Rambus (DIS) thought to be eyeing Electronic Arts (ERTS), again.