For Sale: WPT Price: make resonable offer

cogger · #1 07-11-2005, 05:04 PM

LOS ANGELES, Jul 08, 2005 (BUSINESS WIRE) -- WPT Enterprises, Inc. (Nasdaq: WPTE) today announced that it had received an unsolicited offer to acquire the company. The offer states that it is for $700 million but does not specify terms. The company is attempting to verify the credibility of the offer in order to evaluate it.

LOS ANGELES, Jul 11, 2005 (BUSINESS WIRE) -- As previously reported, on July 7, 2005, WPT Enterprises, Inc. (WPTE) received an offer for the acquisition of WPTE. The offer failed to provide sufficient information for WPTE to determine its credibility. Consequently, and as described below, WPTE still does not have enough information to evaluate the credibility of the offer.

WPTE received the offer for the purchase of the company on July 7, 2005 from the Las Vegas-based law firm of Goodman and Chesnoff, purporting to represent a group of investors headed by Doyle Brunson. The term sheet proposed a purchase price of $700,000,000 but otherwise failed to provide sufficient information for WPTE's management and Board to determine its credibility. The term sheet indicated that the offer would expire on Tuesday, July 12, 2005 at 5:30 p.m. (with a provision for WPTE to request a one week extension). The offer was publicized by issuance of a press release that was released without consulting with WPTE.

WPTE contacted the Goodman and Chesnoff firm in an effort to substantiate the credibility of the offer but was not provided with any additional information. After market close on July 8, WPTE was ultimately informed that the Goodman and Chesnoff firm was no longer involved in the matter. WPTE made further attempts through the weekend to obtain more information but was unsuccessful.

Therefore, WPTE currently is unable to substantiate the credibility of the offer it received last week. If the offer cannot be substantiated and accepted by Tuesday at 5:30 p.m., the offer will lapse by its own terms.

"While WPTE is not actively pursuing offers, it will seriously consider the merits of this or any other offer once it receives the requisite foundation information," stated Steven Lipscomb, WPTE's President and CEO.

cogger · #2 07-11-2005, 09:08 PM

LOS ANGELES, Jul 11, 2005 (BUSINESS WIRE) -- As previously reported, on July 7, 2005, WPT Enterprises, Inc. (WPTE) received an unsolicited offer for the acquisition of WPTE. The offer failed to provide sufficient information for WPTE to determine its credibility. Since receipt of the offer, WPTE has attempted to substantiate the offer and has been unable to do so.

After the market close on Monday, July 11, 2005, WPTE contacted Doyle Brunson, the sole investor identified as a potential purchaser in the offer. Mr. Brunson suggested that WPTE should not expect any further contact regarding the offer. Assuming that no further contact is forthcoming, the offer will lapse by its own terms at 5:30 p.m. on Tuesday, July 12, 2005.

Sponger15SB · #3 07-11-2005, 09:12 PM

Wow, shocking news..... This is the first time I've seen this.....

david050173 · #4 07-11-2005, 10:04 PM

[ QUOTE ]
LOS ANGELES, Jul 11, 2005 (BUSINESS WIRE) -- As previously reported, on July 7, 2005, WPT Enterprises, Inc. (WPTE) received an unsolicited offer for the acquisition of WPTE. The offer failed to provide sufficient information for WPTE to determine its credibility. Since receipt of the offer, WPTE has attempted to substantiate the offer and has been unable to do so.

After the market close on Monday, July 11, 2005, WPTE contacted Doyle Brunson, the sole investor identified as a potential purchaser in the offer. Mr. Brunson suggested that WPTE should not expect any further contact regarding the offer. Assuming that no further contact is forthcoming, the offer will lapse by its own terms at 5:30 p.m. on Tuesday, July 12, 2005.

[/ QUOTE ]

Can anyone see how the SEC will not investigate this? Who makes a 700 million dollar and then avoids contact? Seems like a classic pump and dump attempt...

TStoneMBD · #5 07-11-2005, 10:54 PM

this amazes me that doyle would do something as unethical as this. he is practically stealing money from wpt stockholders.

i dont know much about laws of trading, but it seems very possible that some people may go to jail for this. quite amazing to me.

adanthar · #6 07-11-2005, 10:58 PM

If Doyle or anyone connected to Doyle is found to have purposefully pumped up the stock price, he'll be sharing a cell with the ImClone CEO for a while.

I have no idea why anyone would want to do this since it's so easy to spot, but it's their game.

BuddahShark · #7 07-11-2005, 11:25 PM

[ QUOTE ]
Seems like a classic pump and dump attempt...

[/ QUOTE ]

Sorry not familiar with this term...how is Doyle stealing money from investors exactly? Are you saying the stock price will rise rapidly due to the offer, at which point doyle will sell his holdings, then it will drop when the offer never substantiates? Just curious, thanks.

cogger · #8 07-11-2005, 11:41 PM

Daily Stock Quote Notification

WPT Enterprises, Inc.
(WPTE - NASD)
Closing Price $ 26.50
Opening Price $ 24.35
Previous Close $ 17.75
Change 8.75

Last Trade Jul 8 4:11PM
Volume 9,995,500
Day Low $ 22.06
Day High $ 29.50

Daily Stock Quote Notification

WPT Enterprises, Inc.
(WPTE - NASD)
Closing Price $ 23.20
Opening Price $ 22.97
Previous Close $ 26.50
Change -3.30

Last Trade Jul 11 4:10PM
Volume 5,193,500
Day Low $ 22.25
Day High $ 25.44

TStoneMBD · #9 07-11-2005, 11:48 PM

stock is worth x. a buyer comes in and offers to purchase all stock at 2x.

people now enter the market trying to purchase the stock between x and 2x expecting to sell the stock at 2x when the offer goes through.

instead, the offer declines and the stock probably drops, or at least it should.

doyle made an offer on the stock for $700mill with apparently no way to follow through. the only motives that i can see for him to do this is to pump the stock. i hardly think he would be dumb enough to actually buy shares for himself and dump them. thats auto-jail time. whatever he did though does not look ethical, thats for certain.

DesertCat · #10 07-12-2005, 12:07 AM

[ QUOTE ]
LOS ANGELES, Jul 11, 2005 (BUSINESS WIRE) -- As previously reported, on July 7, 2005, WPT Enterprises, Inc. (WPTE) received an unsolicited offer for the acquisition of WPTE. The offer failed to provide sufficient information for WPTE to determine its credibility. Since receipt of the offer, WPTE has attempted to substantiate the offer and has been unable to do so.

After the market close on Monday, July 11, 2005, WPTE contacted Doyle Brunson, the sole investor identified as a potential purchaser in the offer. Mr. Brunson suggested that WPTE should not expect any further contact regarding the offer. Assuming that no further contact is forthcoming, the offer will lapse by its own terms at 5:30 p.m. on Tuesday, July 12, 2005.

[/ QUOTE ]

I'm hoping that some friends of Doyle used his name without his permission, and he's just not blowing the whistle on them (yet). Otherwise it's scary what could happen to him...