Quote:
Originally Posted by Cowperson
Glendale is alleging that Goldwater is engaging in Tortious Interference and therefore, yes, controlling the sale of the bonds.
In fact, the bonds had a favourable, in-the-market rating from S&P and an ordinary interest rate when first announced, suggesting they were priced in context with the market.
Glendale contacted investment firms directly and indicated they would be suing. It is only their allegation, never proven, that the deal is illegal.
No competent money manager looking after OPM - Other People's Money - is going to get involved at that point. There are just too many other things to be doing with money, most not involving lawsuits, to bother.
In other words, no one is avoiding the deal because of credit risk, too low an interest rate, worries about revenue streams, thinking Phoenix is a sucky NHL market, etc.
They're simply prudently going about their business elsewhere because someone told them a lawsuit would come.
Goldwater is definitely controlling the sale of the bonds.
Cowperson
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I wonder if it would still be interference if the GI just told everyone, press included they were going to sue no matter what to test the deals legality.
They do have the right to sue after all.