TSXV:KUR.H - Post by User
Comment by
gijane_on Jun 06, 2011 3:10pm
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Post# 18676971
RE: Alex offers a takeover bid
RE: Alex offers a takeover bidThinking out loud.
1. Alex owns about 20% of UBS
2. As his friends have some shares, he really needs less than 30% for a majority.
3. For simplicity though, let's assume 30%
4. Suppose he gets enough shares tendered so he gets a majority.
5. Soon after the tender he calls a SGM to install a new board.
6. His slate will of course win because he has a majority of shares/votes.
7. He installs his own board.
8. The first order of business of his board will be to toss out the lawsuits by UBS against himself and Gerry.
9. It would cost "him" about 3 M$ to pay for 30 M tendered shares assuming he pays 10 cents a share. Less if he
offers less or buys less shares.
10. Since he was "rewarded" far more than that amount in the restructuring, it really does not cost "him" anything, but rather it costs us "unrewarded" shareholders.
11. The next order of business for the new board after tossing out the lawsuits and paying the golden parachutes would be to issue themselves and Alex as many options as they like from the amount allowed. After all, they have to incentivize to retain the "talent".
12. Immediately following this perfectly legal charade, the entire team would flick the OSC and the sucker shareholders the proverbial birdie.
13. Unbef'ingleivable!
The only solution I see here for any JUSTICE is a class action lawsuit by oppressed retail shareholders using the evidence UBS has gathered so far but won't be able to use if Alex gains majority before the case is heard, which is likely in view of expected court delays.
#13 again !