OTCPK:RKNLF - Post by User
Comment by
MatWeion Sep 17, 2016 8:13pm
67 Views
Post# 25248937
RE:RE:RE:RE:RE:RE:RE:What is ESW motto?
RE:RE:RE:RE:RE:RE:RE:What is ESW motto?shareholders might well want to shoot down a $3 offering price (but they should note that would already represent a 50% premium on the current share price, that's getting pretty high in terms of a purchase premium).
The point is not what existing shareholders would want to get though, it is what the maximum purchase price an acquirier could offer and still be able to make the return they are seeking on their investment after restructuring the operation. And not having crunched any numbers myself, I imagine that ceiling is between $3-$3.50 given the current state.
As I noted before, if shareholders get greedy and want $4 or $5, the acquirer would just say 'screw it' and drop their bid. They would not be able to make a return on investment at that price (IMO).
The one exception I think would be if Lucas himself took Redknee private again. In that case, shareholders really would be furious if they thought the MBO offer was low-balled.