Wednesday, February 20, 2008

Ackman's new plan

Ackman Floats Plan To Not Split Up Bond Insurers -CNBC
Last update: 2/20/2008 7:38:59 AM

NEW YORK (Dow Jones)--William Ackman, founder of Pershing Square Capital Management, presented Tuesday night to New York State Insurance Department Superintendent Eric Dinallo a plan not to split up bond insurers, CNBC's Charlie Gasparino reported Wednesday morning.
Splitting bond insurers into two sectors - one focused on lower-risk municipal bonds and another to handle higher-risk collateralized debt obligations - allows the shareholders of the lower risk holding company to benefit while holders of the CDOs suffer.

Ackman's plan suggested that if the municipal business is performing, the profits could support the CDO segment, leaving the bond insurers whole, Gasparino said.

-Rebecca Townsend, Dow Jones Newswires; 201-938-5174,
(END) Dow Jones Newswires
February 20, 2008 07:38 ET (12:38 GMT)

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