Roddy Boyd of The New York Post notes that billionaire Ron Burkle made a quick $50 million with his investment in Xinhua Finance Media, the parent company of business news service Market News International, based in New York.
Boyd wrote, “According to a filing yesterday from with the Securities and Exchange Commission, Burkle’s Yucaipa Cos. paid $3 per share, or $25.7 million, for slightly more than 8.57 million shares.
“On Sept. 26, when the deal was announced, Xinhua’s stock closed at $8.78, instantly raising Yucaipa Cos.’ stake by $50 million.
“The disclosure was vague as to the reasoning behind Yucaipa’s move, noting only that the ‘shares are undervalued by the market at the present time.’
“Spokesmen for Xinhua and Yucaipa did not reply to e-mails seeking comment.”
Read more here. Market News specializes in covering the bond market and the economies around the world.
