Investing in irony (watching Fl. crumble using the pension fund)

[donsu]

http://www.sptimes.com/2003/09/26/Opinion/Investing_in_irony.shtml

With a chunk of its employee pension fund, Florida is about to buy the nation's most financially imperiled private education management company.
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Edison Schools Inc., the private education management company founded by Chris Whittle, has taken a beating in the financial markets. Its stock, selling for as much as $36.75 a share in 2001, dropped to 15 cents last year. Its very survival depends on a white knight to take it private, some riverboat gambler willing to bet on what seems certain to be a losing hand.

Enter the state of Florida, and its $92-billion employee pension fund. Liberty Partners, a New York investment firm that manages a $1.8-billion chunk euphemistically called "alternative investments," is planning to take a $174-million flier on Edison. Liberty would buy a 96.3 percent share of Edison, giving Florida the distinction of being essentially the sole owner of the nation's largest and perhaps most financially imperiled school management business.

-snip-

"This transaction will risk the hard-earned savings of Florida's public employees on a private company that has lost millions of dollars, is deeply in debt, has been subject to SEC (Securities and Exchange Commission) scrutiny, and is being sued by its shareholders for misleading accounting and disclosure practices," Wiles wrote Thursday. ". . . Our public employees have dedicated their lives to public service and I'm certain that the majority would not approve of a significant investment in a business that seeks to eliminate their own jobs."
-snip-
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where is the Theft Squad when you need them

[madfloridian]

1. Keep posting this, and another link.

http://pasaorg.tripod.com/edison/edison.html

Here is a link kept by a parent's group, and it has all kinds of outrages done by this company.

This needs to be posted everyday like clockwork. I have emailed and called my legislators, sent emails to papers here.

The teachers here are furious, but as individuals they will not speak out. When I was teaching, I was too outspoken and often paid dearly. Most won't, so I hope we can call attention to this for them.

Some are really truly afraid of retaliation, as well they should be.

[donsu]

2. kick

nt

[madfloridian]

3. Found more on this outrage.

More Edison Follies

SNIP...."MORE EDISON FOLLY So it appears that Chris Whittle's little company Edison Schools (not Channel ONE!), is folding its tent and going private....

Good riddance, I say. Shareholders (never mind anyone else) never did right by this thing. So guess who is taking the company private??? A little company called Liberty Partners, a New York money management firm. Fair enough, but who are the folks behind Liberty? Get this, turns out Liberty's sole client is the Florida's public employee pension fund!!..."

[SharonAnn]

4. Perhaps Florida wanted to build a monopoly on

"most financially imperiled school management business(es)".

After all, the Florida public education system is financially imperiled so maybe Florida feels they have a lot of experience in this field.