GREY:CLLZF - Post by User
Comment by
rehsifylfon Dec 11, 2011 11:30am
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Post# 19311025
More experts
More expertsCouple of points,
Have seen lots of criticism about how the news was released but no suggestion of hoe to do it better.
1. They get an offer that makes it clear that the information is to be kept confidential. Guess what - this is how just about every take-over has happened in the past 3 years. Well - anyone who has worked at a company knows how hard it is to keep secrets for long. ALSO - do not forget that there are two parties involved in the offer, and it is just as hard to keep this quiet at the other company. In fact, if I had to wager, I would say it was people who got the info out of the other party that were more likley to be trading on it.
2. IIROC halts trading and asks what is going on. Now here is the thing - this thing tanked from near $1 to 23 cents with non-stop dumping and IIROC doesn't say boo. But it climbs back from 30 cents to 60 cents and they ask what is going on and halt trading? It is the folks at IIROC people should be questioning.
3. CLL forced to make a statement. Do they spill the full beans on the offer and risk litigation? Do they say nothing about the offer and risk later prosecution? Or do they simply say that have received a confidential offer, thereby admitting that word of the offer may have leaked out, but at the very least ensuring that, other than those directly involved on both sides, everyone else has the same info.
I've see lot of people say - never seen this before. Well - what do you suppose would have happened if the IIROC had halted Daylight before the offer was finalized. Was any info about that offer public before they announced?
For those that are upset that "someone's buddies got the info first" - it has been clear to anyone that has been paying attention that CLL was going to be in play sometime before next year. And they aren't the only ones.
Alot of people went through that data room. I think Mr Gusella knows he will never get another chance like CLL and doesn't want to sell - but ultimately the board will have a tough time not accepting a reasonable offer, especially when a major shareholder has already piped in. A reasonable offer would be $2-$2.25 IMO.