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The end of your post negates the first line of it.
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Its just financial engineering.

But his mention that it is a form of options is laughable. Thats not what is going on here.

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TD Bank also believes it will work, i.e. return them a profit.

They've seen the detailed plans and I haven't. But they're the ones with real skin in the game. It seems like an opportunity for them to lose their shirts.

So yeah, eBay shareholders should take TD Bank's free money and run.

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TD Bank believes it will make them a profit. Their interests are not those of eBay’s shareholders: if they can juice the financials long enough to sell their loan, they don’t care if the company goes bankrupt the minute after that sale closes.
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Or ignore the free money/destroy company offer and hold.
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