RE:RE:Exit or accumulationFinally, another voice raised in protest about the proposed RDM action. The sale of this company is wrong on many levels, not least is that senior management has not been even remotely transparent in telling why the enterprise is worth only $5.45 when only weeks ago the picture painted was much brighter. Really hard to understand why a company such as Deluxe or any other did not try an acquisition at least a year ago when the cash on hand would have paid for about one-third of the purchase price.
In part this latest action is the result of work by activist Engine Capital. That firm looks for undervalued opportunities then fairly quickly promotes a sale (they did this with a Canadian logistics company not too long ago) under circumstances that yield them a very nice return. They appear to have little interest in holding on or being engaged in a long-term situation.
RDM minority shareholders could be in a position to kill this deal although sales volumes soon after the annuncement suggest that many folks have grabbed the money and moved on. Most would not have any idea how much potential they were leaving on the table. But then, if adequate information is never shared, how would people know?