RE:Correction to My Concerns about TakeOver Bid
Thanks for the full explanation. I learned from your post on takeover bids and the 115% rule.
Just some other thoughts that have come to mind (all speculation):
- Since Ka An essentially paid exactly 115% of the 20 day average, I assume that Ka An was willing to pay more for the shares. I couldn't figure out why Harrington sold ~half of its shares. If Harrington wanted 100% out, I assume Ka An would have been willing to buy all of Harrington's shares. It could be that Harrington needed the cash and Ka An was willing to pay a premium, so ELR ended up being one of the positions that was sold.
- I think its a little early to say new management isn't treating shareholders well. After the special meeting, we should have a better idea.
- Ideally, I would like to see ELR sell Croc River and distribute the cash to the shareholders. That would cover most of the current share price. Alternatively, could the company do a dutch tender offer? https://www.cnbc.com/id/20000283