They always say, “You are the company you keep.” When Scott Klein started working on preparing to wipe away Verizon debt and rob shareholders of retirements and bondholders from coupon payments for holding the bonds, who else did he choose other than John Paulson’s questionable hedge fund. The same hedge fund that helped bundle packages of investments, and then shorted them while declaring them good securities.
Paulson bought 45% of SuperMedia common stock at $17.00 per share. But if you recall they had an initial offer of $13.00 per share. Paulson raised his bid just enough to cover the other bidder on the company. I don’t recall who made the initial offer. Needless to say at around $44-$46.– per share, Paulson could sell all shares of the company and make a substantial gain.
This poses a question, was Paulson the hedge fund that was NAKED SHORT SELLING IDEARC STOCK? Just like in other cases, did he jump back in to double dip again?
What do you think?