A Pro and a Con
PRO: If the other bids were lowball bids and thus turned down, it suggests to me that CXR management isn't willing to sell CXR for less than fair market value....Perhaps the bids were in the high 40s or low 50s, but if CXR is projecting / will meet their 2016 target of over $6.00 per share in earnings, these offers would indeed appear to be lowball bids, so why sell the company at this price....?....Better for CXR to meet its 2016 earnings targets and let that do the talking for the company.......CON: The one thing that concerns me re. CXR is the press release from Montrusco Bolton Investments dated April 20, 2016 which states in part "Based on an ISS report and our in-house assessment, we are of the view that the total compensation of senior executives is exorbitant. MBI agrees with ISS that the lack of transparency regarding how compensation is determined, combined with the CEO's exceedingly high annual increase in compensation, and other issues are serious matters for shareholders. In addition, MBI is of the view that Concordia Healthcare Corp stock unit plans' vesting periods are too short and do not provide sufficient alignment between senior executives and long-term shareholders. For the aforementioned reasons, MBI will withhold its votes for two directors of the compensation committee seeking re-election - Jordan Kupinsky and Douglas Deeth. " Confirmation of shareholders' lack of faith in the management team appeared to be demonstrated in the CXR press release dated April 29 outlining the results of the annual meeting when the following percentage of votes for the Board Members were "Withheld" by shareholders: Douglas Deeth 47.9% withheld, Edward Borkowski 36.5%, Mark Thompson 23.6%.......In other words, large shareholders seem to lack faith / trust in certain board members and Mark Thompson himself.....that's a pretty big red flag in my opinion......