I shorted FMCN after the news
The SECâs initial and follow-up information requests cover a broad range of documents and information related to the operations, finances and transactions of the Company and its subsidiaries, with a primary focus on the Companyâs (i) acquisitions, investments, restructurings and divestitures, including those transactions related to Allyes Online Media Holding Ltd. (âAllyesâ) (including (a) the management buy-out of a 38% ownership interest in Allyes from the Company in 2010, (b) the Companyâs subsequent sale of its remaining ownership interest in Allyes to one or more funds affiliated with or advised by affiliates of Silver Lake Management, L.L.C. in July 2010, (c) dividend payments and other financial and accounting aspects of Allyesâ business, (d) the Companyâs acquisition, restructuring and divestiture of its internet advertising subsidiaries and other variable interest entity affiliates, and (e) financial and accounting records pertaining to these transactions); (ii) disclosures, re-categorizations and operational data related to the LCD display network, poster frame network and movie theater business; (iii) corporate structure, including the use of wholly-foreign owned operating subsidiaries and variable interest entities; (iv) financial records and general financial condition; (v) director and officer compensation and relationships with Company affiliates and third parties; (vi) corporate governance and internal control practices; (vii) share offerings, including the secondary offering conducted on September 7, 2010, buy-backs, cancellations, and dividends; (viii) communications with various third parties, including Deloitte, Goldman Sachs and Fosun; and (ix) documents discussing or responding to some allegations made against the Company in the market.
