"Bernie Buys CART" made it to Autosport

[full__throttle]

Originally posted by Liz
In Long Beach, from what I hear.

Rumor from where, MarkC?? Come on there is on there is only one F1 street race and they are not going to Long Beach. Why would F1 do that?

[Flatspot]

Greg, that's kind of correct but not exactly. CART has restrictions on buying anymore than 15% of its stock (unless it is a tender offer to buy it all). Forsythe got amendments to this that apply specifically to him and to nobody else in exchange for his agreement that anything he purchased above the 15% would go to the board. I beleive this applies for two years then he can vote it all. The amendments are also purchase specific so anytime he buys more, a new amendment for that purchase needs be ratified by the Board.

If Bernie (or anyone else) wanted to purchase a controlling interest they would need to get their own amendment which may be the same or different than Forsythe's.

There are other "poison pill" provisions that allow for the existing shareholders to buy at 1/2 market price if someone tries to do this through some type of hostile takeover.

Any potential deal between CART and Bernie for control will need be carefully orchestrated and approved by the board and all of the shareholders. The upside is it keeps TG and his homeboys out of any substantial position in CART.

This stuff makes my head hurt!

[Liz]

It gives me a headache too, but today's toronto sun says the New York Stock Exchange has been asked by the BOD of Champ Cars to approve this share business to Forsythe, and once it is approved, the controlling interest will be sold to Bernie. Molstar is ecstatic. "[Bob Singleton, vice president of Molstar] speculted that an announcement could be made as soon as the first week in November [at fontana]."

Here's the part about the NYSE for those who can understand this stuff.

"The wording of yesterday's NYSE filing is the key to understanding that this move foreshadows a CART takeover. At Forsythe's request, the amendment permits him and his affiliated companies to increase their ownership of CART stock to 3,664,782 shares or 24.9%, without triggering a stockholders rights plan. The rights plan is very specific in that it details that CART shareholders receive fair value and equal treatment in the event of any proposed takeover of the company. The CART BOD said in a release it favoured Forsythe's increased holdings. 'The BOD believes thatt his amendment is in the best interest of CART and its shareholders" the statement read."

This would explain two things if it is true. It would explain why Mario (member of BOD) would be trying to talk Baby Mikey into not throwing his life down the by heading to Invisible Valley; and it would explain why the FedEx "announcement" was yanked off CART.com and has not been seen anywhere else except in Indianapolis papers.

Yes it's all speculation but it's HOPEFUL speculation! Let's keep those candles lighted!

[FastCar5]

I hope all this backroom, boardroom stuff comes to be but doesn’t all seem a little…no a lot…surreal. Is it possible everyone is imagining all this because they really “want” it to happen. Kinda like eventually believing your own lies. I hope I’m wrong!

:confused:

[Liz]

Well, over in the other forum they are believers in TG's assertion that their series will outdraw F1 AND NASCAR within five years. And if that isn't moonshine, I've never heard it.

There's many a slip twixt cup and lip, but at least this indicates that people are trying to come up with a way to keep the series growing.

[FastCar5]

Agreed Liz!