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Mcvicar Industries Inc V.MCV



TSXV:MCV - Post by User

Post by merriamon Apr 12, 2014 12:58pm
144 Views
Post# 22443676

Takeover compensation "not fair" according to Valuation

Takeover compensation "not fair" according to ValuationI just found, burried in the notice of the special meeting,  that the directors are declining to recommend the takeover bid.  They note that the Valuation and Fairness Opinion concludes that "the consideration to be received is not fair, from a financial point of view, to Shareholders" and that the fair market value "lies in the range of $0.70 to $0.76 per McVicar Share" (p. 8, my emphasis).

It is refreshing to see a valuation that does not merely rubber-stamp an insider takeover bid.

However, it is disappointing that the supposedly independant directors cannot see fit to simply recommend that shareholders reject this low-ball bid on the basis of the independant valuation instead of weakly failing to make any recommendation.  A press release strongly recommending a rejection of the offer would have gone a long way towards soliciting a more appropriate,  higher bid from our CEO.
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