Jeb Bush's former business partner Armando Codina takes $255 Million from FEC stock sale in buyout.

[seafan]

And another piece of news about our former governor that came to light this week:


When Jeb! was still governor in 2006, he worked with DOT to grease the skids for his former business partner, Armando Codina, to facilitate a major merger of The Codina Group with Florida East Coast Industries (owners of the FL East Coast Railway system). Then, in May of this year, FEC was suddenly bought by a group of private equity investors with Fortress Investment Group. Interestingly, in the week before this deal, there was a flurry of activity in FEC options trading.

And when this sale was finalized recently, Armando Codina, Jeb's! former business partner walked away with $255 Million from the sale of his FEC stock.


Just as a reminder:

When The State's Negotiations Went South, September 9, 2007

.....

In early 2005, Henriques was named FEC's chief executive officer. That happened at the same time the state was formulating a new approach to passenger rail, focused on using existing freight rail lines, and preparing to negotiate with CSX.

Less than a year later, in January 2006, FEC announced it was buying Codina's real estate company, the Codina Group.

The deal would give Codina more land across the state to develop, including industrial property near the rail hub CSX planned to build in Polk County. FEC would get Codina's South Florida property - and Codina's political connections.

A Cuban refugee who got rich in South Florida real estate, Codina backed the elder George Bush in his 1980 presidential campaign. After the election, Codina brought 27-year-old Jeb Bush into his company, and over the next two decades, the pair made millions closing development deals.

When FEC bought the Codina Group, Codina took over FEC's real estate arm and joined its board of directors.

Henriques sent his e-mail to Bush in February 2006, a month after announcing Codina would join FEC.

Faraj, Bush's spokeswoman, said she did not know whether Bush was aware that Codina had joined FEC at the time of the e-mail exchange with Henriques. She described that exchange as routine for a governor who is known for his use of e-mail. She also said Bush had no conversations with Codina about the FEC deal.

In an interview for this story, Stutler said he doesn't remember receiving any instruction from Bush about meeting with Henriques. But he said meetings occurred and the state negotiated with FEC through the final months of Bush's term.

.....

Jeb and Armando go way back.

Difficulties in spotting suspicious trades, May 10, 2007

.....

Options trades are increasingly attracting scrutiny among regulators in spite of the difficulties of tracking flows across the fragmented US options trading business. For enforcers, options trades are “a flare, a marker that you can see”, said Michael Garcia, the Manhattan US attorney who has brought three major insider-trading cases in the past year.

“The balance is you can make more money but you really set off the watchdogs,” he added.

In another example, Tuesday’s purchase of Florida East Coast Industries, a railway and real estate company, by Fortress Investment Group, was preceded by soaring options trading almost a week earlier. As many as 16,747 options contracts on Florida East Coast were traded last Wednesday alone – almost 27 times the average daily trading volume for April of just 623 contracts.

.....

Acxiom Options Trading Jumped Before Buyout News (Update4) , May 17, 2007


.....The rise in well-timed options trading has happened during a boom in corporate takeovers. More than $2 trillion in global mergers have been announced this year, a record pace.

Trading in options to buy shares of Florida East Coast Industries Inc. surged to the most ever last week before the railroad operator said it will be acquired by private equity firm Fortress Investment Group LLC.

.....

Jeb, Armando, CSX and FEC. Who is really surprised any more. We are being robbed blind.


Hello, SEC regulators?

[seafan]

1. A kick to get the info out. n/t

[EFerrari]

2. They had to run Junior because Jeb got too dirty.

Hello, indeed.

[bobthedrummer]

3. seafan, you know your BFEE-and today John Ellis Bush is a Boardmember of Tenet Health

http://www.tenethealth.com/TenetHealth/OurCompany/John+Ellis+Bush.htm

IMPEACH CHENEY FIRST