Tuesday, March 15, 2011

Collusion

``Collusion is an agreement between two or more persons, sometimes illegal and therefore secretive, to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage. It is an agreement among firms to divide the market, set prices, or limit production. It can involve `wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties`. In legal terms, all acts effected by collusion are considered void.``

Any brokers involved in this type of activity, in this transaction, should familiarize themselves with this term or similar legal terms that better fits the description.

Shareholders should make notes of brokers with suspicious market activities during this period. If a shareholder lawsuit is launched down the road, brokers with these suspicious activities may be pulled into the legal case (as part of a collusion type activity, to buy shares on the open market, then vote YES to the deal (or not vote the shares at all, but pull them off the market), then sell the shares back to offeror at a pre-determined price at a later date, as a side deal), especially if an insider of the brokerage company is willing to testify or if regulatory bodies find evidence of any type of suspicious activities upon investigations.

6 comments:

ATInsider said...

Very nice info. I think it's about time we had a leader to speak up for us CMM share holders. Who will be that leader?

Anonymous said...

We must elect a leader, and he/she needs to call Peggy and the conference call.

Anonymous said...

What broker is going to admit to colluding with CMM?

Anonymous said...

Here is how WTG gets around the crux of the issue - namely: What is a fair value of WTG paper? All WTG has to show is market valuation of the shares - nothing justifies the current nor previous market caps.

Related Party Transactions / Business Combination

Pursuant to Multilateral Instrument MI 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Bridge Loans constitute a "related party transaction", and the Business Combination constitutes a "business combination", for Century as Maxim Finskiy, a director of White Tiger, beneficially owns and/or exercises control or direction over more than 10% of Century's outstanding common shares and more than 50% of the outstanding common shares of White Tiger. Century is exempt from the formal valuation requirement as its securities are not listed or quoted on a specified exchange as outlined in MI 61-101.

Each of the Business Combination and the Bridge Loans constitutes a "related party transaction" for White Tiger under MI 61-101. No formal valuation on the part of White Tiger is required under MI 61-101 in respect of the Bridge Loans and White Tiger is exempt, pursuant to section 6.3(2) of MI 61-101, from the requirement to obtain a formal valuation in respect of the Business Combination.


Bottom line is that this deal could not hold up to scrutiny if formal valuations of both companies were conducted.

I suspect that Major will point to the valuation of WTG at $4.50 and the associated premium as justification for the deal. He'll say it is fair because it is such a high premium.

Problem is that once WTG has some liquidity, its M/C will be adjusted to the real "fair value" and that won't provide CMM shareholders with $1.80 worth of stock.

Ron S. said...

If I may quote BigJohn37 from his posting elsewhere on this blog
Fellow CMM shareholders,
We (retail shareholders) can still be the masters of our future. It's too bad that even Mr Sheridan & Campoy abandoned us. So here is what we can do (as Carib suggested a couple of days ago): (1) let's vote NO to this offer from WTG;
(2) let's vote for a new BoD, which should appoint a new Management. (3) Let's become the masters of our Company. To lead our fight we should identify and appoint a co-ordinating team (I would nominate Carib, Production and Real_Economics). But above all, let's not panick and allow OUR company be stolen from us for TOILET PAPER!"

My only comment; amen
Ron Schnee

bigjohn37 said...

Excellent point, Production. I will be sending this message to the regulators, including the OSC, plus half a dozen of the major Brokerage houses.

Carib's new poll indicates that 90% of us don't want to use WTG toilet paper under any circumstances. Carib put it eloquently when he wrote: "It's hard to want to continue a relationship with these bandits no matter what they offer now!" AMEN!