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As many of you know I emailed Whitney Tilson last week following the merger annoucement, here's what he said:

Mike,

What exactly are you unhappy about? Of course all of us would like a higher price, but do you think the Board of IPK didn't make best efforts to do so, or was incompetent in conducting the auction? I find no evidence of this. Of course, they could have not sold at all, but they didn't have much choice as a 32% shareholder needed to get out.

$26 is 30% above where the stock was trading only a few months ago before the company announced it was conducting an auction, so while I'm not jumping for joy at the price, I'm happy to have cash given my view that this market/economy could really take a nosedive.

Best,

Whitney



I may post again with how my thoughts have progressed over the w/e. However I'll leave this post unblemished so you can soak up Mr. Tilson's remarks.

Mike
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While I too am disappointed with the premium, Tilson makes some good points. If we had had 20-30 million lying around, I guess we could have participated in the auction too. There's a bit of a gap between what we think the company is worth and what the auction participants thought, granted, but we could be wrong.

Moral to the story: have 20-30 million lying around some day, and hope this kind of deal is still coming around from time to time.

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Oh, and thanks for posting the reply. In particular, the point about the price being up a fair bit in the last few months is a good one;; I guess that's our premium.


Regards, gg
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Mike,

Thank you for posting Mr. Tilson's response to your email. I appreciate the fact that Mr. Tilson took the time to respond to your email, he really didn't need to.

“What exactly are you unhappy about?

Myself: As I have said before a buyout would only be worthwhile to me if the purchaser(s) offer a price sufficient to cover the opportunity cost I will incur from the loss of my ownership interest in Imperial Parking's future cash flows.

Of course all of us would like a higher price, but do you think the Board of IPK didn't make best efforts to do so, or was incompetent in conducting the auction?”

I have no idea about the content of your email, but I have a feeling you did not imply that the board was incompetent in conducting the auction. I get a sense of irritation here on the part of Mr. Tilson. Time to move on.

Thanks again wpfan,

Latticeworks2000
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