Memphis : My home is and has been in Memphis for many years. This category covers local news, events and information.
Updated: 7/20/2002; 4:19:29 PM.

 



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Monday, July 08, 2002


NEARLY 10% SALES TAX

TENNESSEE'S INCOME TAX BATTLE: A lot of people have emailed to ask me what I think about it. Generally, I refer 'em to Bill Hobbs, who has been covering this issue like a blanket. (Just go there and start scrolling down).

I did write something about this issue for the Nando Times a few years back, and it has held up pretty well. (It's gone from the Nando site, but thanks to the miracle of Google you can read it here.) The big problem is that Tennessee's elected leaders have tried to address this problem by sleight-of-hand rather than persuasion. Every time they've done that, they've hurt their own credibility, and every time they've hurt their own credibility, they've reduced their ability to sell it in an aboveboard fashion.

It's a bipartisan problem. Ned Ray McWherter, our last governor, was a Democrat -- and perhaps the sharpest Tennessee politician in my lifetime. Don Sundquist, the current governor, is a Republican (and, ahem, not quite as politically sharp as McWherter).

Neither tried running on a pro-income tax platform; both said they were against it until they were in their second and final term, at which point they came out in favor of the tax. (In Sundquist's case, he was giving anti-income tax speeches until just weeks before he decided to support the tax)... [InstaPundit]

6:41:50 PM     Comments[]


DELAWARE LAW

didn't permit Warren Buffett's usual method of structuring these kinds of deals. Everyone involved wanted to do a convertible preferred equity deal with similar terms. Instead, under Delaware law, the deal had to be structured as junior convertible subordinated debt.

Because of the friendship and longstanding business relationship between Mr. Buffett and Level 3's chairman, Walter Scott, Mr. Buffett suggested that Mason Hawkins at Southeastern Asset Management be the lead investor.

All investors expressed an interest and willingness to consider further investment in the business. Expected uses of the proceeds will be for industry consolidation where the opportunity to buy a list of customers is available. They would transfer to the Level 3 network.

You can listen to the conference call about the deal here.

Buffett joins Level 3 investors. Warren Buffett's Berkshire Hathaway and two other companies are investing $500 million in the network operator. Is a new round of consolidation in the cards for the networking industry? [CNET News.com]

6:31:50 PM     Comments[]


© Copyright 2002 Steve Pilgrim.



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