SEC Filings Alert: David A. Siegel Revocable Trust unloads about 128,000 BXG Shares

[swirg53 Senior Member Find all posts View Profile Close swirg53]

I thought the Diamond purchase was a done deal. Did I miss something? I haven't been up to date with BG as I am in the midst of selling a few of my other timeshares. It's amazing to me that the deal might be off the table.
Marylyn

The "deal" was never a done deal. And in fact, it was never what I would consider a "deal". It was and as far as we know still is a "Letter of Intent" that expired on Sept. 15 but was extended. The following is from the BG web site:

BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 15, 2008--Bluegreen Corporation (NYSE: BXG) ("Bluegreen"), a leading provider of Colorful Places to Live and Play(R), announced today that it has agreed to extend until November 15, 2008 the period during which Diamond Resorts International has an exclusive right of negotiation to acquire all of the Bluegreen common stock at a price of $15 per share. The parties have agreed to continue to work to reach a definitive agreement for the acquisition of Bluegreen at the earliest possible time.

Alan B. Levan, Chairman of the Board of Bluegreen commented, "Diamond Resorts has advised us that it is continuing to move forward with the acquisition of the Company at a price of $15 per share, but needs the additional period to finalize due diligence and its financing arrangements. Diamond Resorts has also agreed to pay us an amount approximating Bluegreen's expenses in connection with the transaction."

As previously announced, it is anticipated that the definitive agreement will include a "go-shop" provision permitting Bluegreen to actively seek alternative transactions which would provide greater value to its shareholders. Bluegreen is engaging a financial advisor to assist in this process.

The parties have agreed that if, notwithstanding their efforts, a definitive agreement is not reached by November 15, 2008, they will continue to work towards such agreement until December 15, 2008, but that during such period Diamond Resorts will no longer have an exclusive right of negotiation and Bluegreen may actively seek and negotiate alternative transactions.

I specifically bold and underlined some of the text, showing it is definitely not a "done deal" and never has been. As others have conjectured, financing will be nearly impossible at this stage of the economy/financial conditions. Also, with the stock market plummet, it is doubtful that DRI would still be willing to pay $15 per share. That would even make the financing less able to be secured at that price.

DRI already bought a near bankrupt resort (SunTerra) and even if finances were good in the economy, I think a bank would have second thoughts about loaning more to buy another timeshare company, especially when it is predicted for the company to go belly up within two years. [Per Motley Fools] (By the way, I don't think that will be the case but maybe that is only being a hopeful owner!)