GREY:ETPHF - Post by User
Comment by
Supercycleon Mar 29, 2011 7:33pm
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Post# 18358382
RE: RE: RE: RE: Well...
RE: RE: RE: RE: Well...Management did it becuase they think its undervalued and because its a good PR move. I doubt that they are any companies waiting in the wings to buy it - too early still. Keep in mind that the insiders control about half the stock - there is literally no way that anyone could go hostile and do a takeover unless management was on side.
If a company makes a takeover offer they virtually always want all the stock. They will usually offer a premium to the market price at the time of the offer (30% is common) and they usually want to get management onside and have them sign a lock up agreement (they agree to take the offer and not to solicit bids from others). There will then be a shareholders meeting where shareholders will vote on the deal. If the price is right and people like the deal the vast majority of shareholders will usually say yes. If the company succeeds in getting 90% or more of the shares they can apply to the court for cumpulsory acquisition which basically means they can force the remaining shareholders to take the deal even if they don't want to.