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Just Shoot Me

Bala, 28, Gordon Gekko in the making, pseudo-intellectual, cynic, bibliophile, obsessive compulsive ranter...

Q & A

December 17, 2008

Q : களவாணிப் பயல் சகவாசம் என்றால் என்ன?. எடுத்துக்காட்டுடன் விளக்குக.

A : Mr. X owns 9% of Company S and controls the management. He also owns about 90% of two uppuma/bongu/dappa companies. Mr.X suddenly decides that company S will buy the two dappa companies, for $1.6 billion. And it turns out Company S, has $1.5 Billion cash in hand. What a miraculous coincidence!!!. So in effect, Mr.X was writing a $1.3 billion cheque to himself with his shareholder's money. So, Dear Constant Reader, the people who can answer this question best are the people who own the rest of Company S. Last heard, they were standing in line to sell their shares of Company S.

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posted by Bala, 6:11 PM

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