Thanks Much for the AdviceI just want to say thanks to all the experts that have arrived on the scene in the past two days. Your sage advice and profound insight on CLL is very much appreciated.
My favorite are the ones who have "seen it before". You know what I've "seen before" is "experts" who arrive after the fact and start spewing all sorts of cautions. The guys who "got out and took my quick 100% gain" but that was the first port they made.
I especially enjoy the soul who suggested that we be careful about "rumours". Last I checked, the company issued a statement that clearly stated what was going on. There is a difference between "rumour" and "speculation". There is speculation as to what the offer was, but it is not a rumour that there is an offer, it is a fact.
So - lots of new buyers hanging on to dry leaves. When the shake happens, and it will happen, they will drop off instantly - with a few parting "glad I sold at the top" posts.
The fact is that CLL is not interested in selling the works. They want a JV. I can't see why anyone who would JV wouldn't just buy the company, but that is not CLLs stated goal. For the offer to be accepted, it would need to be above $1.5 IMO. Personally I would sell mine at $2 - and believe me I hold a boatload of these shares. I suspect the offer is somewhere between $1 and $1.25. I don't think it will be accepted, but it does improve CLLs negotiating power on the JV because the JV is going to have to show significantly better long term value than the short term value of selling - otherwise the board will have to recommend to sell.
To the fellow who suggested that the buyer needs to access the data room - perhaps you should spend another 30 seconds reading up on CLL (thereby tripling the amount of DD you have done) to see that the data room was open for 2 months and that is undoubtedly what led to the offer.