ST Alpha - "I don't think the claim is a winner (or will even be pursued), but I think the point of the article is more that it's market manipulation than insider" (Reading a Post)

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I don't think the claim is a winner (or will even be pursued), but I think the point of the article is more that it's market manipulation than insider

Posted by pmb (aka pmb) Nov 18 '14, 15:25

trading, and it while not illegal it doesn't feel right. Essentially he created a scenario that was no lose for himself. If he buys the company at a price he thinks is fair, then he wins. If he gets outbid (which he thinks is likely based on what he knows of the other players), then he wins. So he manipulated the market in a way that isn't available to average investors (which is why it feels unfair).

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[deleted]
[deleted] 2
- I largely agree, but again, it's just not an option available to any investor so it shows how the markets are somewhat rigged in favor of those who - pmb Nov 18, 15:44 1
  - [deleted]
It's a great example of how the market gets driven by very few people, many of whom are dangerously reckless. -- nm - David Nov 18, 15:28 7
- The counterpoint is that all the investors in that company benefitted. His actions generated a high valuation of the company. The flipside of course - pmb Nov 18, 15:31 6
  - [deleted] 5
    - Of course, but this was an acquisition that he essentially orchestrated not for the best interests of the company, but for his own. - pmb Nov 18, 15:48 4
      - [deleted] 1
        
        Again, yes. I'm just trying to make the point about why this "feels different". He wasn't really looking to be the purchaser (though he was willing - pmb Nov 18, 15:58
      - How is this different than the 'old' version of the hostile takeover? -- nm - Ender Nov 18, 15:51 1
        
        Really, it just never got that far. And there's a reasonable chance it wouldn't have (it's expensive and there are often defenses available to the - pmb Nov 18, 16:00

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I don't think the claim is a winner (or will even be pursued), but I think the point of the article is more that it's market manipulation than insider

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