And that link is to here.
Where they discuss the way in which Somali pirate attacks are financed by syndicates. Stump up some of the cash necessary to get a raiding operation going, get a chunk of the rewards…..if there is indeed a ransom in the end.
Not unlike pirate style raiding was financed in our own dear land when we called them Letters of Marque and the like.
What that\’s got to do with Modigliani Miller I\’m not quite sure.
Anyone actually able to work out what Ritchie meant there? Maybe?
Quite apart from anything else, how does he get from a capital structure that we\’re not valuing (as there is as yet no transfer market in such pirate syndicates) to a disproof of a theory which talks about how capital structures change valuations….or don\’t?