[Leica] Leica Solms LUG LHSA Buyout

[Thinkofcole at aol.com (Thinkofcole@aol.com)]

Jon, Leica Camera AG's stock symbol is LCA on the Frankfurt Stock  Exchange.
 
 In November of 2000, Hermes International bought 31.5 percent [or 30  
percent of Leica's fully diluted shares] for 17.7 million euros, according 
to  Leica 
and Hermes. It bought the shares in a tender offer from stockholders for  
12.5 euros a share, for a 30 percent premium over the market price at the 
time. 
 
Leica's current market price is 2.65 euros bid, 2.68 asked , for a decline  
of 33 percent in the last 52 weeks. The bid price is what people are willing 
to 
 pay. The asked price is what sellers are asking for their shares. If, as 
Leica  said recently, it has lost one-half of its market capitalization --  
currently reported to be 17.15 million euros, Leica has lost almost 8.6 
million  
euros. 
 
Leica currently has 4.5 million shares, of which Hermes owns 31.5 percent,  
or --based on the current total number of shares -- Hermes owns 1,417,500 
shares  at a price of 12.5 euros each, or 17.7 million euros. Those 
1,417,500 Leica 
 shares at the current market price of 2.65 euros bid are worth about 3.76  
million euros. Thus, it would appear that Hermes has a paper loss on its 
Leica  
investment of nearly 14 million euros. 
 
Moreover, if about a third of Leica is currently valued on the Frankfurt  
Stock Exchange at about 3.76 million euros, the entire company -- 
hypothetically  
--should be available in the open market for about 11.3 million euros.  
That, 
however, is only hypothetical. If something really wanted to buy all of  
Leica he would have to pay considerably more. 
 
 
Instead of Leica users stepping up to the plate, one real positive sign of  
confidence in Leica as a company worth saving might be for a worldwide  
consortium of Leica dealers to invest, say, $250,000 each in a new Leica AG, 
 with 
the money to be used to buy any Leica equipment they chose and the right to  
sell their call on Leica equipment to any others members of the Leica  
consortium. 
 
regards, bob cole