OTCQX:MRVFF - Post by User
Post by
Schaffhausenon Feb 24, 2016 10:35pm
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Post# 24592575
Anatomy of a Takeover
Anatomy of a TakeoverThe anatomy of a takeover includes management buy-in as a prerequisite. I have seen these transactions occur from a front row seat. A company is only as saleable as the management cooperates to be bought out. At face value the design of the Nuvo company split is based on management enrichment that will occur in a friendly takeover and then also by continued custody and control of the cash reserves through Crescita (while also within arms reach of the compensation scheme).
It would not be a lofty test to prove the risky and non-investment grade nature of the Crescita "business" plan. The salient question becomes: If high risk non-investment grade decisions are supported by the BOD, then what is left of FIDUCIARY duty? Are shareholders expected to relinquish their invested dollars to the equivalent of a lottery "business plan" ? Is it democratic or oppresive to put the business plan up to a kangaroo court vote where management uses the shareholders very own invested dollars to persuade less sophisticated and apathetic shareholders to vote in their favour? How many voting shares are closely held? How many brokers were acting faithfully in their clients interests by advising a "YES" vote considering that the Crescita business plan doesn't describe any return potential beyond what might be expected playing KENO?
An eventual takeover of NRI will simply corroborate the contrived scheme and add to the weight of evidence. What's interesting is that the BOD may find that, in the event of a buyout of NRI at any multiple of todays shareprice, there will be many well funded plaintiffs from the "offended" ownership pool. Sometimes its not all about money, it can become personal. It would certainly behoove my jurisprudent sensibilities to play this out in her majesty's court of law. Within those four walls the BOD loses their cloak of invincibility; it only takes one rational thinker with a refined BS sniffer to bring justice.
Cheers,
Schaff
Schaff