Wednesday, March 30, 2011
It's getting that any snake with a Twitter account can launch a bid on a multi-billion dollar company!
There's been a swirl of news about a "bid" for AMR. I think the fact that AMR is even talking about this suggests they don't believe there is anything to the "bid" for the company. Over at Marketwatch, they note that the same group that has purported to make a bid on AMR recently made a "bid" for Eastman Kodak that Kodak concluded was a hoax. Barron's did a little more digging and came up with this gem: The guy apparently at the center of the "bid" for AMR and Kodak was the subject of an SEC civil action in 2002. From the SEC's litigation release:
Further, the complaint alleges that since Weintraub gained control of Vector, its filings with the SEC have failed to disclose one or more of the following: (1) In 1992, Weintraub pled guilty in Broward County, Florida to five felonies: one count of organized fraud and four counts of grand theft; (2) In 1998, Weintraub pled nolo contendere in Miami-Dade County, Florida to four felony counts for fraudulent practices; (3) Also in 1998, a civil judgment was entered against Weintraub in the amount of $22,897.36, which remains unsatisfied; and (4) In 2000, a civil judgment was entered against Weintraub in the amount of $33,549.62 which also remains unsatisfied. The complaint also alleges that Vector misrepresented Weintraub's background in its annual report for the year ended December 31, 2001 which was later also incorporated by reference into a Form S-8 registration statement. The complaint further alleges Weintraub has profited from Vector's misrepresentations and omissions by dumping millions of Vector shares into the public market for a profit of well over $200,000.
In any event, AMR's stock jumped 5% on the "news". Presumably, if anyone is engaged in attempted market manipulation, the recently re-invigorated cops on the beat will track that down. Moving on.