Take a look at the movement in EDMC today. They would be an interesting lowball buyer for Heald in CA as they need a CA footprint and would be in a position to leverage some of their DOE relationships to get CA AG to back off a bit and facilitate a sale.
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If I remember correctly, the DoE agreement with CCI last July precludes a sale to another for-profit that is under investigation for fraudulen pracices. I believe that disqualifies EDMC as a buyer.....
if we are sold, I pray it will not be to another company listed on the stock market. It's a guarantee of profit over education. Heald needs to get out from that mess.
Even if Heald is given away for free, it could cost multi millions with the lawsuit
There are speculations that the company might have manipulated federal student loan and grant programs and engaged in inappropriate recruitment and enrollment practices.
Education Management has not been performing well for several years due to challenging macroeconomic conditions in the U.S., a considerable decline in the availability of private loans, students' reluctance in taking loans and continued challenges in obtaining student financing; changing regulatory requirements and increasing price sensitivity.
Read more: http://www.nasdaq.com/article/whats-up-at-education-management-edmc-this-earnings-analyst-blog-cm440371#ixzz3SFgOgykv
In October last year, Education Management revealed its intention to voluntarily delist its common stock from The Nasdaq Global Select Market and deregister its common stock under the Securities Exchange Act of 1934. The company has also been facing various litigation issues blaming it for violating federal securities laws by overstating revenues and goodwill or for providing inaccurate statements regarding its financial position.
Read more: http://www.nasdaq.com/article/whats-up-at-education-management-edmc-this-earnings-analyst-blog-cm440371#ixzz3SFg8z8gv
Not a possibility. They are not doing well financially and are even late in reporting earnings... http://www.nasdaq.com/article/whats-up-at-education-management-edmc-this-earnings-analyst-blog-cm440371
Very interesting. This is the first real insight I have seen here today. The EDMC cash on hand is low, so I wonder how they could work this? Maybe CCi would just let Heald go at a very low price.