Reply #1: maxkeiser; correction and amplification on SBS and Cantor deal...

[maxkeiser]

in the article the way it was published; the journalist writes:

'Then suddenly, in May 2001, with the Scandinavian Broadcast Service in control of the assets and apparently willing to write the last check, Cantor Fitzgerald stepped in to acquire the company."

The deal between SBS and Cantor was prearranged (and in my opinion not in keeping with SEC regulations). SBS had the sale to Cantor already made when they took control of the common stock of HSX with a sum of money (2mn. dollars) that 'crammed down' or eliminated the common stock as an ownership stake with a new preferred class of stock. The company was then 'sold' to Cantor for 2 mn. in ESPD stock (the listed entity of Cantor - at a cost to Cantor being almost nothing). In other words, SBS was able to get their hands on 2 mn. of ESPD stock for nothing... As a sweat heart deal arranged on the board level (illegally in my opinion) that effectively killed the common share holders and the company. Alas, the stock deal did not pan out because Cantor moved the company to the top floor of the WTC just a few months before 9/11 when fate finally caught up with them and they lost something like 600 bankers... The actions of the board to allow this "sale" to happen is another story that really does start to get into some interesting Hollywood back waters; let's just say that the board was not acting in the best interests of the share holders...