MPH What is happening?

[Wheel-Nut]

The stock is way up as of 12:30p CST


LINK (http://money.iwon.com/jsp/qt/ataglance.jsp)

[nrc]

Probably just the market responding to Forsythe's comments about trying to talk Bernie into buying in and taking the company private. This is a predictable result of such talk, which is why I've said that I think he has other motives for being so public with it.

Specifically, I think he's probably fishing for additional partners to help take the thing private.

[racer2c]

In another thread someone posted an article stating that BE was interested in buying 50% of CART. Gerry has 25%. That leaves, let's see, carry the one, uh, 25% to unload, I mean sell. I'm surprised Gerry just wouldn't take it himself.

[Wheel-Nut]

But isn't this old news? Has BE actually bought 50% of CART? Why the jump in value now?

[JoeBob]

Usually when a company goes private, the stock is bought for some premium over the current stock price. (To make up for future gains that shareholders won't be able to realize)

For example, whoever takes CART private (and my bets would be Bernie, Gerry and a bank financing and/or investing in the rest) might offer $5/share. If you bought at $3.00, you'd get a profit of $2/share - if the deal went through. After the deal is announced, you'll see the stock price approach (but not reach or exceed) the buyout offer price. The gap between stock price and buyback price is a good measure of Wall Street's faith in the deal actually happening. (If they're close together, they think it will happen. If there's a signifigant gap, they don't.)

[pchall]

Up 0.82 (25%).

Something is happening.