What?

Post #272,925 by jbrabeck 11/11/06 5:19:09 AM Reply	What? Proceeds will go toward paying off the loan that funded the dividend I thought that a dividend was paid when the company made a profit and had the funds to pay the dividend, not where the company had to borrow money. Am I missing something here? A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. (Herm Albright)
Post #272,932 by drewk 11/11/06 7:58:35 AM Reply	Wow, cool plan Carlyle group et al buy a company, take out a huge loan against it, pay themselves a huge dividend, then use the procedes from an IPO to pay off the loan. Guess they couldn't just wait for the IPO to get paid like everyone else does. In a perfect market, the share price realized in the IPO would be discounted by an amount that compensates for the additional debt burden, and this could theoretically be a net neutral transaction. Except that money today is always worth more than money tomorrow. === Kip Hawley is still an idiot. === Purveyor of Doc Hope's [link\|http://DocHope.com\|fresh-baked dog biscuits and pet treats]. [link\|http://DocHope.com\|http://DocHope.com]
Post #272,937 by Another Scott 11/11/06 8:18:56 AM Reply	It's called "Vulture Capitalism". [link\|http://www.bartleby.com/66/43/27743.html\|We don't pay taxes. Only the little people pay taxes.] You don't really expect boards and owners to only make their fair share when there's a profit, do you? WDYH Masters of the Universe SM? ;-) A nice screed, from 2002, against these types of actions by some CEOs and corporate boards is at [link\|http://www.responsiblewealth.org/press/rwnews/2002/enron_KC_star.html\|Responsible Wealth]. Cheers, Scott. (Who notices that Halliburton was one of the "winners" in the story - which was written before the war started.)

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