Replies to post #24428 on Lehman Brothers Financial SA (LEHNQ)

[camaro4me]

But if they want to IPO the CTs to newco they would give us as well as themselves the best possible deal.

[stockmojo9]

They already have the control to make the decisions that are best for them with or without majority interest in the CTs, Iron!

The benefit of gaining large stakes in the CTs is that Lehman won't have to payout as much in coupon & cumulative payments and will be rewarded if trading the shares should they reach the Big Board once again.

It isn't just Lehman as a legacy company that considers this. After the last drop, AAPL announced plans of a dividend increase and a share buy back making investors tolerate a drop from $700+ and a good investment for the Company.

[hestheman]

CT's do not have voting rights.....nor do reg preferreds. I believe that there are provisions in the prospectus that state we may have some voting rights under certain circumstances should the securities remain unpaid and outstanding, but not enough voting rights to screw CT's over in the manner you just mentioned. The only reason for Lehman to repurchase some of their CT's would be to cushion the blow once they distribute a payout. Also, per my prior post earlier on this topic.... they can do this and it would not be considered insider trading because our CT's are classified as bank debt rather than securities, and debt securities are not subject to U.S. securities laws.