Paul Singer's Elliott Bites The Dust

toongeorges

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Elliott, the victim of the Argentine bonds got another beating today:

http://www.reuters.c...N13E3P820151119

This is in short the story:

Dialog Semiconductor is a company that grew a lot with the smartphone boom. However, the smartphone boom is ending and the company has 1 very big customer (Apple) that represents about 75% of the sales. To continue growing, Dialog decided to focus on the Internet of Things. Dialog thinks it can better position itself for the Internet of Things and diversify its customer base by taking over another company, Atmel.

After the takeover plans were announced, the stock of Dialog semiconductor fell with 40% and the stock of Atmel rose. Elliott thought that Dialog was destroying shareholder value, so in a couple of days, it bought 5% of the 3,000,000,000 USD company to oppose the deal. At the same time it was shorting Atmel. If the deal was broken up and the price of Dialog and Atmel stocks would return to the same level as before the deal was announced, it would have made a lot of money quickly.

However, the majority of shareholders decided to approve Dialog's takeover proposal and now Elliott is disappointed.

Paul Singer seems to make a sport of jumping into merger and acquisition deals and break them up. Another unsuccessful attempt earlier this year was with Samsung. Though there are others in which he made a lot of money.

He is an experienced defaulted bond buyer and he once forced a company to pay him a 3000% profit for his bonds.

If he wants Argentina to pay up for its bonds it is not because he once paid the full value and just wants his money back.
 
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