Kronospan / CVC Capital acquisition of WFG What was the purpose of the leak of Kronospan/CVC’s interest in acquiring WFG? Was it:
- A clever ploy by Kronospan to pump up the price of the stock while it liquidated it’s holdings? Kronospan reportedly owns about 9% of WFG so they would have had about 7.7 million shares before the announcement. They’ve might have sold off some of their shares but it doesn’t look like any large amount of shares were sold after the first and second days after announcing their joint proposal.
- Was this a cleaver ploy by WFG to try and put a floor under its stock price while forestry stocks entered a seasonally weak period?
- Was this a cleaver ploy by Kronospan/CVC to initially announce their intention, then be quiet and wait for the stock to erase all of its gains thereby putting pressure on the Ketcham family and the company to approach Kronospan and enter into talks and sell at a favorable price to Kronospan / CVC?
I think their interest is real and an annousement will be made in the coming weeks.
We shall see…..