Phil writes:
>http://www.theregister.co.uk/2004/06/02/sco_baystar_agreement/
>
>I must say I don't entirely understand it yet.

  Here's my cynical take:

Baystar invested $20m in Series A stock and later bought another $20m
from RBC (I didn't see what they paid - call it $xm).  So they have
invested $(20+x)m.

In April, Baystar tried to get a refund from SCO for (all?) its Series A
stock - giving various reasons.

Clearly SCO didn't want to refund the $20-40m, and maybe had some
aspects of the anti-stock-dumping agreement on its side, but it agreed
to negotiate.

The two side agreed on something which the article seems to describe as
ending up with SCO giving Baystar $13m plus "two million ordinary
shares."

So Baystar retrieved maybe 50% of its cash $(20+x)m investment and got 2m
shares (worth or potentially worth?) - sure beats 10cents on the dollar;
SCO got out of paying $20-40m in cash by paying $13m (33-65%) plus some
shares.
--
--henry schaffer

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