Hey AhmedWhat happened initially was ANZ withdrew support a...

Hey Ahmed

What happened initially was ANZ withdrew support a company Chimera Capital with an expected $55 million rescue deal.

http://www.theaustralian.news.com.au/story/0,25197,23949039-643,00.html

2 directors of Chimera are also directors on the LSL board.

These 2 directors had margin loaned shares in LSL...about 2.5 billion of them.

ANZ seized these.

The 2 directors are sueing ANZ to get them back...poor buggers.

Anyway...to prvent ANZ seizing so much control of LSL, another major share holder called Fortess Clearing Sydney sold down like maniacs..sending the share price down 90%.

I dont know why they sold down to prevent ANZ getting control...thought they would try buy ANZ's stake..but either way...it didn;t work and ANZ holds the biggest share holding in LSL.

Fortess backed off after dumping 66 million and are holding only 411 million now.

ANZ has not sold any shares. There choice is to hold onto them or find someone to buy them which all would expect would be an off market buyer.

Those that got stung were the 2 directors who lost ALL their shares and anyojne holding above 1.5 cents when the sell of began.

We right now are still getting LSL at a ridiculous price in my opinion...still a third of where it was at before.

Also....LSL seemed to get a guilty by association tag due to the 2 directors of the now failed chimera being on the LSL board.

Looking at the fundamentls, no material change has occured (or we would get some kind of announcement). $3 million in the bank...made 4 million profit in 2006, 8 million profit in 2008...this year...we are still to find out.

Actually quarterlys are all coming out now so we should get some more info in that.

The company is doing something right to do this well...just unfortunate what happened to those 2 guys..but thats the market lately...quite brutal in how it goes about business.

HOpe this helps...ask anything esle.