Replies to post #94 on Scottish Re Group Ltd Perp Pfd (SKRUF)

[h_man_investor]

Correction: you could sell all of the underlying businesses separately to different owners and not trigger the CIC but like I said this scenario will be avoided by MM and Cerberus.

Regardless, what if MM and Cerb sell a business and want to make a cash dividend? They could pay it out to the equity shareholders after they make 4 dividend payments to preferred shareholders. That's pennies compared to the capital they have tied up.

As MM and Cerb said in their application to the Delaware Insurance Regulatory body- their capital levels are the highest they've ever been in the history of the company. Sure helps when there is $600mm of Mezz equity in front of you.

[bwana12]

Regarding the common, I said 50cts, they paid 30cts. The majority accepted, not much you can do about that. They were able to screw the minority dissenting holders (including yours truly).

What I fail to see here is why they would offer $16 now, if $25 is four or five years into the future (and that assuming that $25 ever materializes). Because they will make 10% on their $16 bucks a share? These are NOT 10% return investors, they aim for more. This is private equity, and the clock is ticking.