RE:RE:No Delek deal but sailing soonunless Delek just aggressively launch a bid without prior Ithaca consultation, which they could of course. Not sure how that would work with Delek's existing board representation?
Doug, certainly Deleks membership on the BOD primarily represents Delek's interest in their investment, and anyone thinking otherwise would be naive, but as a board member of a publically traded company, would they not also have a fiduciary responsibility to all shareholders and as such Delek would no longer be in a position to go hostile. Perhaps someone with a corporate legal background could provide insight. My guess is that this deal was done last year and Delek was brought on board for three reasons. The first is that it provided the company with needed infusion of cash. Second, it warded off any potential threats of a hostile takeover from other companies, besides Delek. And third, it protected IAE from being subjected to a hostile takeover from Delek. By bringing Delek into the fold, IAE became legally protected from a Delek hostile takeover. And from Delek's perspective, it sends a clear message to any other suitors that Delek has first dibs on IAE. It was a very clever defensive move by the IAE legal minds just as the company was at its most vulnerable. Cudos to Mr. Zammit. But again, I'm just speculating.