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SCO and BayStar - Again, For Real This Time, SCO Says It's a Done Deal
Wednesday, August 25 2004 @ 01:08 PM EDT

Once again, SCO says the BayStar deal has closed. I seriously doubt they would put out this notice if BayStar had not agreed this time.

I did ask the SEC, but they refused to comment. How, then, I asked, are investors supposed to evaluate? It is clearly relevant to a decision they might make as to whether to invest. Ask your broker, I was told. But he won't know either, I pointed out. Read the filings, she said. "All we care about is whether they make the appropriate filings." Well. That explains a lot, huh?

No doubt we'll find out more about this at SCO's next teleconference, now scheduled for August 31. They will discuss 3rd-quarter results, and add:

"In conjunction with the release, the company will also host a conference call that same day at 5:00 p.m. (EDT) or 3:00 p.m. (MDT) to discuss the Company's results as well as update the investment community on several important corporate developments."

Here is the press release about BayStar.

********************************

The SCO Group Reconfirms Closing of Repurchase Transaction Between SCO and BayStar Capital

Wednesday August 25, 11:51 am ET

LINDON, Utah, Aug. 25 /PRNewswire-FirstCall/ -- The SCO Group, Inc. (Nasdaq: SCOX - News) confirmed again today that the repurchase transaction between SCO and BayStar Capital closed on July 21, 2004 as previously announced on July 23, 2004. BayStar requested and has now received its stock certificate for 2,105,263 shares of SCO common stock and $13 million in cash in accordance with the terms of the Stock Repurchase Agreement between SCO and BayStar dated May 31, 2004. Effective as of the closing, all of BayStar's 40,000 shares of Series A-1 Convertible Preferred Stock were cancelled and are no longer issued and outstanding.

For more information on the original press announcement, see http://ir.sco.com/ReleaseDetail.cfm?ReleaseID=140068

About SCO

The SCO Group (Nasdaq: SCOX - News) helps millions of customers in more than 82 countries to grow their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network of more than 11,000 resellers and 4,000 developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.

SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.


  


SCO and BayStar - Again, For Real This Time, SCO Says It's a Done Deal | 100 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Slight Sense of deja vu
Authored by: Anonymous on Wednesday, August 25 2004 @ 01:30 PM EDT
Compare
-----------
1. SCO issue a press release saying they own the UNIX copyrights (late May
2003)

2. Novell issue a press release saying, oh no you don't (late May 2003)

3. SCO issue a press release saying oh yes we do, pointing to Amendment 2 (early
June 2003)

4. Darl repeatedly claims that Novell withdrew their claims and essentially
crawled under a rock after SCO press release #3

5. It larges emerges that Novell never withdrew their claim, and were disputing
3+4, all along, in private correspondance with SCO, despite Darl's statements to
the contrary


Versus
--------

1. SCO issue a press release saying BayStar has closed

2. BayStar issue a press release saying oh no it hasn't

3. SCO issue a press release (today's) saying oh yes it has

4. ????

5. ????



So the question is, what happens in steps 4, 5, etc., in the BayStar sequence.

[ Reply to This | # ]

OT here
Authored by: Anonymous on Wednesday, August 25 2004 @ 01:33 PM EDT
2nd Post !!!

[ Reply to This | # ]

  • MSN money still promoting SCOX - Authored by: Anonymous on Wednesday, August 25 2004 @ 02:17 PM EDT
    • Not really - Authored by: Anonymous on Wednesday, August 25 2004 @ 03:59 PM EDT
  • Hey Billy - Authored by: Anonymous on Thursday, August 26 2004 @ 12:19 PM EDT
OT Question for PJ
Authored by: eigerface on Wednesday, August 25 2004 @ 01:34 PM EDT
Your disclaimer:

IANAL. I am a journalist with a paralegal background, so if you have a legal problem and want advice, please hire an attorney.

Didn't you used to describe yourself as a paralegal and not a journalist? Why the switch?

[ Reply to This | # ]

SCO and BayStar - Again, For Real This Time, SCO Says It's a Done Deal
Authored by: Peter H. Salus on Wednesday, August 25 2004 @ 01:38 PM EDT

Well, the shares of scox are now under $3.80. 2.1M shares
are worth less than $8M. This plus $13M = $21M. As the
40K shares were originally $40M, this means that BayStar's
puppetmaster (oops, investor) lost about 50%. By my
calculation, RBC lost about 40% of their [investor's]
money.

---
Peter H. Salus

[ Reply to This | # ]

OT: SCO's Novell homework
Authored by: Anonymous on Wednesday, August 25 2004 @ 01:49 PM EDT
There's a joint stipulation, dated 23 August:

SCO have up to and including 7 September 2004 to reply Novell's motion to
dismiss.


Quatermass
IANAL IMHO etc

[ Reply to This | # ]

What does SCO do?
Authored by: Anonymous on Wednesday, August 25 2004 @ 01:55 PM EDT
In the PR, under "About SCO", the word "Unix" does not
appear. The word "software" does not appear. You couldn't possibly
figure out from this blurb what line of business SCO is in. Odd.

At least the word "litigation" also does not appear.

[ Reply to This | # ]

Live from Brazil; it's the SCO show.
Authored by: Sunny Penguin on Wednesday, August 25 2004 @ 02:00 PM EDT
"In conjunction with the release, the company will also host a conference
call that same day at 5:00 p.m. (EDT) or 3:00 p.m. (MDT) to discuss the
Company's results as well as update the investment community on several
important corporate developments."

Yes, to discuss the results (We're broke)

Update the investment community (We are in a non- extradition country)

Corp. devel. (Call us USL now)



---
Just Say No to Caldera/SCO/USL/?

[ Reply to This | # ]

From Yahoo SCOX Board... Appears to be the real deal!
Authored by: Cletus the Yokel on Wednesday, August 25 2004 @ 02:06 PM EDT
Report from bindicap: http://finance.messages.yahoo.com/bbs?action=m&board=1600684464&tid=cald &sid=1600684464&mid=172118

BayStar confirms: repurchase closed
by: bindicap 08/25/04 12:37 pm
Msg: 172118 of 172203
I reached BayStar's new spokesman Justin Meise by phone to ask him about the situation in light of SCO's latest PR.
All he would say is that BayStar confirms that the transaction is closed. He couldn't answer a question about the registration statement and SEC approval. He said that SCO might know about that.

[ Reply to This | # ]

SCO and BayStar - Again, For Real This Time, SCO Says It's a Done Deal
Authored by: Slimbo on Wednesday, August 25 2004 @ 02:14 PM EDT
That $13M should take a nice cut out of SCO's war chest.

$50M - $13M - $legal_feesM - $excutive_bonusesM - $operating_costM +
$sco_sourceK = $didly_squatM

How much longer until $didly_squatM = $0.00?

[ Reply to This | # ]

SCO and BayStar - Status?
Authored by: rsteinmetz70112 on Wednesday, August 25 2004 @ 02:33 PM EDT
I guess this means that Baystar is not going to sue over the allegations they
were making. Baystar is still a big share holder, so they still have an interest
in what SCOG is doing.

---
Rsteinmetz

"I could be wrong now, but I don't think so."

[ Reply to This | # ]

SCO and BayStar For Real This Time
Authored by: AllParadox on Wednesday, August 25 2004 @ 02:39 PM EDT
My guess: BayStar finally dragged in a senior IP lawyer (I imagine that BayStar
managers make pretty good corporate law and bankruptcy law analysts, just
sitting in their chairs) and had that worthy review the latest IBM filings.

When they recoverd from their panic at the IP lawyer's report, they decided that
$US 13 Million, by itself, was a pretty good deal, all things considered.

Now all they have to do is pray that 90 days go by before TSG is forced into
bankruptcy.

---
All is paradox: I no longer practice law, so this is just another layman's
opinion. For a Real Legal Opinion, buy one from a licensed Attorney

[ Reply to This | # ]

You know what they say...
Authored by: Anonymous on Wednesday, August 25 2004 @ 03:24 PM EDT
Go to bed with a dog, don't be surprised if you get bit. I have no sympathy for
bad investments made by unethical groups.

[ Reply to This | # ]

SCO and BayStar - SEC 8K posted
Authored by: tglx on Wednesday, August 25 2004 @ 04:24 PM EDT
Here is the real confirmation
www.sec.gov/Archives/edgar/data/1102542/000104746904027281/a2142711z8-k.htm

The traders are gaining speed. The volume is not breathtaking but at 230K
clearly over the average of 155K in the last 3 month. Close is $3.60 (-5%). I
talked to a Fondmanager and he said it's hard to tell if they will survive the
hearings in mid of September.

[ Reply to This | # ]

How does THAT work?
Authored by: MikeA on Wednesday, August 25 2004 @ 06:34 PM EDT
"...The SCO Group, Inc. confirmed again today that the repurchase transaction between SCO and BayStar Capital closed on July 21, 2004 as previously announced..."

Ok - Now how does THAT work, exactly?

If they are claiming that the repurchase transaction closed on July 21st at the first announcement....and Baystar denied it....but they are saying it still went through. Obviously, it DIDN'T go through, but now both parties *seem* to be agreeing to change history. Would they have to retro-actively make the math and accounting add up to make it such that it was the same as if it did go through on that date?

In other words, what is the difference with saying that the transaction went through today? Is there any difference?

---
Change is merely the opportunity for improvement.....
but I can't think of a better signature yet.

[ Reply to This | # ]

SCO and BayStar and friends
Authored by: Chris Lingard on Wednesday, August 25 2004 @ 06:57 PM EDT
This must be the end of SCO; a deal has been done.

Right now they will be voting bonuses and selling anything for cash.

If you sell paper shredders, you can do a deal there,
but be sure to get cash.

Once the shares crash, with help from Baystar's extra shares; then Baystar will
take over. They can ask for a
delay whilst they re-arrange everything. And all the
"assets" will have gone when they file for bankruptcy.

The best part is if the lawyers do not get paid.

Pity about the mugs who bought shares :-)

[ Reply to This | # ]

SCO and BayStar - Again, For Real This Time, SCO Says It's a Done Deal
Authored by: Brian S. on Thursday, August 26 2004 @ 12:42 AM EDT
Baystar are cowards. They have no position, either financial or moral. They
merely seek to make money. I'm western but I understand the principle "I
spit on them." Nuff said.

Bian S.

[ Reply to This | # ]

SUPdate ->SCO, BayStar Fight Appears Over
Authored by: Anonymous on Thursday, August 26 2004 @ 09:20 AM EDT
http://www.eweek.com/article2/0,1759,1639742,00.asp

According to Blake Stowell, communications director at Lindon, Utah-based The
SCO Group Inc., "BayStar requested the $13 million and the 2,105,263 shares
of SCO common stock certificates SCO owed BayStar for its $40 million worth of
Series A-1 shares within the last 48 hours, and SCO has sent it, which confirms
the deal we had announced on July 23."

Since their spat over whether the deal had closed or not, both companies have
been silent about the matter until Wednesday's announcement. According to
Stowell, "No talks were held between the two companies. It was business as
usual. From SCO and the SEC's viewpoint, the deal was a done deal. All that
happened was that the transfer of cash and stock that could have been done on
July 23 was done on Aug. 24."

system5

[ Reply to This | # ]

SCO has NEW PR Firm???
Authored by: gfolkert on Thursday, August 26 2004 @ 11:52 PM EDT
Atr the bottom of that Press release!!!!


Blake Stowell, +1-801-932-5703, bstowell@sco.com, or Marc Modersitzki,
+1-801-932-5635, mmodersi@sco.com, both of The SCO Group; or Anton Nicholas of
Sloane & Company, +1-212-446-1889, anicholas@sloanepr.com, for The SCO Group

[ Reply to This | # ]

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