Friday, May 2, 2008

Maguire to go private?

Maguire's name came up at lunch with a friend a few weeks ago in connection with the direction of the market and the failed attempt to sell the company. Now I am reading that Robert Maguire is trying to take the eponymous company private by dumping its non-OC assets, distributing the proceeds to shareholders and then going private with the remaining OC assets.

The independent directors are apparently saying no dice to the initial proposal because it is too iffy. My question: is this a sign of desperation or need for liquidity or loan issues, or a sign that the company, whose shares are down some 50% in the last year, might be a good bargain in a depressed market? Mr. Maguire surely knows more about his own company than we do. Guess we'll have to watch this.

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