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Hi folks I'm just off a boat(!!!!!) having gone round in circles for a few weeks , just like most of you here- well mine was, to be more accurate, an ellipse but I am back almost where I started from so the effect is the same .I've skimmed the posts here since I left and see that there is a deal of confusion over Polygons intentions,so i'd like to offer some clarification.
Cautionary note - I have less than my usual access to documentation and a slow internet connection so this is all based on experience and stuff I have in my laptop rather than the details of the current position.
Polygon are sitting on large profits from their activity in SXX, I believe they now have no shorts extant and have sold all their CB's at a fat profit(someone can probably confirm).
They have accumulated a significant position in CFD's equivalent to a little over 10% of the equity. A CFD is " a contract to pay the counterparty the DIFFERENCE between the current price and the price at some future date for an asset , in this case SXX shares.
Key facts , Polygon will have paid a fraction of the price of a share each for the CFD ie typically they may have paid <1%. So they could have arranged control of (about 600-700 mill) shares for maybe £0.5 million!Maybe a little more but chicken feed in their terms.
They have therefore the potential for a very substantial profit on a tiny outlay if any other bidder comes along.
OR, see this from the Slaughter and May takeover doc I have quoted before.
Appx 3 para 1.8, assuming AAL have swept up more than 75% but less than 90% of the stock
"minority shareholders have two balancing rights of lesser practical importance. First they can apply to the court for an order that the offeror MAY NOT acquire their shares(thus Polygon remain a minority holder of what they see( like you lot) as a long-term profitable mine) or MUST ALTER THE TERMS ON OFFER.(my italics)
So polygon have possibly two ways of making a fat profit on next to no outlay.
Casapinos - but do you think that will help the rest of us ?
Casapinos
Have you disembarked your boat to come and join us on the Titanic?
We're all shuffling deck chairs around at the moment.
God I hope it was a bloody big boat !! Imagine being one of the other passengers Being stuck on it !
Casapinos - 'Hi folks I'm just off a boat(!!!!!)' - You just can't help yourself can you? Always telling us how much better your life is than ours. You are the annoying holidaymaker everyone tries to avoid.
Your collective term for posters of this board is 'you lot'.
One of the few tiny positives of being taken over is we won't have to endure you attempting to talk down to us. CFDs - don't try and educate us you pompous idiot - anyone can read up and understand what these are in five minutes if they wish to do so.
Trinityman Poor old Casapinos was employed on the boat and only earning a crust. He was supplying the wind for the sails so it was full speed ahead and mouth wide open.
Trinityman though true the "just off a boat ... was a joking reference to one of the many insults i get here.The main thrust of the post was to seek to explain something about Polygons use of CFD's which, despite your assertion, seems not to have been clearly set out by anybody here.
Yellow Polygons activities might have helped to drive the SP up to a fraction above the offer price so the benefit to you is to get out at a touch higher than waiting, no more than that.
15 lives it was almost exclusively steerage passengers who succumbed on the Titanic, there were lifeboats for all in the upper classes- sadly life's a bit like that!!
But on the Titanic the captain thought that the honourable thing to do was go down with the ship, rather than sell it quickly, grab a performance bonus and get another job on the carpathia (and all while the steerage passengers are abandoned to their fate without so much as an apology).
The captain went to jail.
I'm gradually bailing on this ticker, reducing sxx exposure for other alternatives, it's like at least once in a week another window of opportunity opening and large chunk of money sitting in sxx - largest portfolio weight, just converted into nmc small bit..
In fairness you make a fair point considering that the Costa Concordia was driven onto the rocks prior to the captain abandoning everybody else... there are similarities!
Gertfrobe............!
If I remember correctly, he wasn't qualified to pilot that ship either, and was showing off to the crowd at the time............!
All the best (useless piece of my opinion there :()
And received a lot of abuse off everybody.
Polygon 600.000.000....?
Polygon continues to increase their stake
600,000,000; 8.547% (as reported on 7 February 2020)
before
598,416,902; 8.524%
They might have got more today, when the share price drop. It seems that the possibility of some twists may still exist, so the share price recovered from the low (around 5.38p) to above 5.45p.
Well they seem to have covered all their stategies on this one.
Polygon co-founder Reade Griffith has been a major European Event Driven Equities and M&A investor since the mid-1990s. The strategy is founded on a diversified, catalyst-driven portfolio that exhibits a low correlation to European equity markets. A thoughtful, size-constrained approach allows a focus on more attractive and less-followed opportunities while remaining nimble. These include:
Corporate Restructuring: participation in recapitalisations and balance sheet deleveraging via equity issues
M&A: favouring hostile, cross-border or otherwise complex transactions more likely to be misunderstood by the market
Dislocation: medium-duration, high-conviction trades with significant upside potential
Special Situations: “piggybacking” on corporate activism and/or pre-deal opportunities
Yes Navara
I am so happy someone els noticed that.
Smed.
Polygon added another 3m:
603,730,485
8.600%