BE (Bearingpoint) - Up for sale?

BE (Bearingpoint) - Up for sale?

Summary: Insights from a governmental filingCheck out the Bearingpoint 8-K the company filed this week.

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TOPICS: Banking
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Insights from a governmental filing

Check out the Bearingpoint 8-K the company filed this week. I found this comment about Bearingpoint particularly interesting:

"Given that the Company has, to date, been unable to reach agreement regarding a sale of all or a portion of the Company's business, the Company's Board of Directors recently directed our financial advisors to approach holders of our various series of subordinated, convertible debt to explore the feasibility of restructuring all or selected series of our convertible debt or exchanging existing convertible debt for equity. At present, we have no indication of what, if any, terms may be acceptable for any such restructuring and we can give no assurance that any of our existing convertible debt can be restructured or exchanged for equity in the near term or at all. However, the Company believes that some sale, restructuring of indebtedness or combination of the two is likely to be a necessary condition to achieving near-term compliance with the NYSE's continued listing standard relating to minimum average market capitalization and the Company has previously communicated this position to the NYSE."

Wachovia reports that "BE faces a $200 million "put" in April 2009. BE is seeking approval for a 1-for-10 to 1-for-50 reverse stock split." The company's stock closed Friday at approx. 21 cents/share.

If BE is sold, expect buyers to be most interested in the company's government business line and/or its European operations.

Topic: Banking

About

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

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