Look like Westgate's take over stopped

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

from timesharebeat

Bluegreen Corporation (NYSE:BXG) announced yesterday that it has settled pending litigation with David A. Siegel, David A. Siegel Revocable Trust and Central Florida Investments over the acquisition by these shareholders of approximately 32% of the outstanding stock of Bluegreen. Central Florida Investments is the parent company of Westgate Resorts, a timeshare company that is a competitor of Bluegreen.

Under the terms of the settlement, the Siegel shareholders must reduce their holdings by at least 5.4 million shares within one year, and fully divest their holdings within two years. Pending their sale, all Bluegreen shares owned by the Siegel shareholders will be voted in accordance with the recommendations of Bluegreen's Board of Directors. The Siegel shareholders have also agreed not to pursue any takeover or other extraordinary transaction with the Company or to seek to control or influence Bluegreen's management.

The Company also amended its rights plan yesterday, as agreed in the settlement. As amended, the rights plan will give the Siegel shareholders additional time to sell their shares, consistent with the schedule set by the settlement. If the Siegel shareholders comply with the schedule and all other terms of the settlement, the fact that they hold more than 15% of Bluegreen's common stock will not trigger the rights and the resulting dilution of the Siegel shareholders' holdings.

Jya-Ning

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Count your blessings as a Bluegreen owner

Thats wonderful news for the owners at Bluegreen. There isn't a more heavyhanded and owner unfriendly resort group than Westgate. Do anything posssible to stay out of their den. Even if Bluegreen had what you thought to be the worst management ever (and I'm not saying they are - just saying if that was the case) you dodged a bullet when Westgate was prevented from taking over. They are without a doubt the worst. Hands down. Case closed. Its always great to see the King be beaten back.

[shopgirl Senior Member Find all posts View Profile Close shopgirl]

This is great news. I have seen a downward spiral in Bluegreen points prices on ebay. They will be on the upswing again, which is great for the owners. I am very happy for BocaBum.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

I guess lawsuits sometimes do some good in the timeshare industry. Bluegreen must have had some high caliber ammunition to force this settlement.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

I guess lawsuits sometimes do some good in the timeshare industry. Bluegreen must have had some high caliber ammunition to force this settlement.

Carolinian,

I think you are right. Bluegreen is really coming out of this smelling like a rose. It would be fun to know what the smoking gun is!

[timeos2 Senior Member Find all posts View Profile Close timeos2]

I guess lawsuits sometimes do some good in the timeshare industry. Bluegreen must have had some high caliber ammunition to force this settlement.

Lawsuits fought for the right reasons can be very good. But even then there is no guarantee of outcome or cost. It is best to avoid them unless absolutely necessary. And, unlike one resort or an individual, class action lawsuits tend to favor only the big boys involved and usually end up hurt those already victimized again. 9 out of ten of those should never be filed and the results are at best meaningless. (Look at the Microsoft fiasco, the AT&T $5.39 refund check, the many cases of a "voucher" that meant you had to spend more money with the offending group - the list goes on and on. Only the lawyers win in most of those cases.)

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Hallelujah

Wooooooo Hoooooooooo.

That just made my day.............................

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

I guess lawsuits sometimes do some good in the timeshare industry. Bluegreen must have had some high caliber ammunition to force this settlement.

I agree. This was a different type of lawsuit. One titan against another one. So, it was an even match. And, David Siegel is amongst the most ruthless and victorious players in the industry.

The big winners out of all this are Bluegreen Owners. Bluegreen is a terrific management company.

2007 maintenance fees for a 10000 point account went up to $560 from $550. That is a 1.8% increase.

There was a larger increase from 2005 to 2006 where it went from $515 to $550. That was mostly due to 2 things. First, increased insurance from all the hurricanes. And, the funding of a substantial reserve fund.

[crwisconsin Senior Member Find all posts View Profile Close crwisconsin]

There was a larger increase from 2005 to 2006 where it went from $515 to $550. That was mostly due to 2 things. First, increased insurance from all the hurricanes. And, the funding of a substantial reserve fund.

I will gladly pay for a reserve fund. Any resort or system without an appropriate, adequate reserve fund does so at its own peril (as timeos2 can verify).

Charles

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Based on the following report from the business news

South Florida had a Wall Street moment Sept. 29 when a district court judge denied efforts to stop a poison pill plan which, if triggered on its Oct. 18 deadline, could force a timeshare mogul to dump a chunk of his substantial stock in Bluegreen Corp.

and the settlement is on Oct 17th. Look like there will be no extra cost (except the cost for lawyers) to BG. So it is complete victory to BG and its owners. But it probably affect their sales a little. Will see what happens on their financial report.

Jya-Ning