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Re: GoodMorningVIETNAM post# 4297

Tuesday, 06/10/2008 1:43:12 PM

Tuesday, June 10, 2008 1:43:12 PM

Post# of 5096
I agree they would want to do it as cheaply as possible, but like I said the terms would decide whether current shareholders would profit or suffer further.
Usually, on the big boards, private equity means that KKR or Cerebus or somebody would take a company private, at a premium to market. In those cases, shareholders benefit.
But on the OTCBB, "private equity" means dilution via convertable notes and warrants at a discount, not a premium, to the market price, which damages us "little guys" while the equity firms rake in the dough.
I don't know how high up or close to actual operations your source is, he might just erronously think "us investing in company = increased PPS" because that is the way it works on the big boards when PE takes a company private.
Do you know the name of the PE firm, or if it is a PE firm that mostly does larger cap stocks?

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