February 5, 2004

Every PIPE has an Alpha and Omega

Chuck Talk writes "There has been much speculation about the origination of the BayStar and RBC PIPE investment in the SCO Group (stock symbol: SCOX), and with good reason. Although the companies were acting on behalf of clients, those clients have not filed or declared their ownership with the Securities and Exchange Commission. That would seem to technically violate the rules of the Securities and Exchange Commission, for the investors in SCO Group now hold a seventeen percent (17%) stake in the company, according to the best evidence publicly available.

Somewhere, somebody has made this purchase, yet no one seems too worried that they have not registered their ownership of a greater than five percent (5%) holding in a public company. In a rush to enjoy the laissez-faire attitude so prevalent today, it seems that few reporters have picked up on the lack of disclosure. It seems that no one has learned the lessons of the past few years always follow the money.

There is enough information available publicly to make the whole ongoing affair appear to have a very questionable beginning and a likely very questionable ending as well. It does appear that the Royal Bank Of Canada has been acting to hedge a position for its client and that client has not registered its ownership with the United States Securities and Exchange Commission.

I am always struck by the sheer audacity of those who would invest in litigation and then deny their involvement. In fact, they seem to belong to the genus Self-Delusionus and species Shadow-Puppet-Weaselus. It should be obvious to anyone involved that people conduct secret deals when they do not wish for everyone to know that they have colluded or conspired to perform a transaction that none would consider kosher in the light of day. Why else do they seek to hide their efforts and distract everyone from the facts?"

Link: orangecrate.com


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