capeman, BAC is contractually bound NOT to short CFC’s stock over the 18 months following the deal. In addition, the 8-K filing doesn’t mention that this is a “floorless convertible,” as you’re suggesting. It merely mentions that the conversion price could be adjusted under “certain circumstances,” which we’ll find out about soon enough. (Might have “floorless” characteristics, might not – we don’t know yet.)
So, if you believe that BAC was “shorting CFC into the hole,” as you stated above, I believe you’re mistaken. And if you’re mistaken about BAC’s ability to short CFC’s stock (which is public information), you very well may have other aspects of this deal wrong as well.
