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janice shell

05/17/06 8:38 PM

#7405 RE: midtown123 #7400

Nobody told me. The markets work according to rules. There's no mechanism that would make what Pearl wants to do possible.

Basically, she has two choices:

-- She could make a tender offer to shareholders, offering the exchange as outlined. Shareholders could accept or decline.

-- She could do a reverse split, with or without offering the debentures as a kind of "sweetener".