This again!!! Thin premium!!I have been through this takeover routine quite a few times before. I usually sell soon after the takeover bid. I have regretted this decision more than half the time. The Motorola offer will have all the details required for shareholders to make a decision. However, when an offer that has a very thin premium is recommended by management I am very cautious. My informed suspicion is that there may be outside factors at play. Insiders may be offered certain perks that are not part of the agreement. Example: Generous management or consulting positions, major bonuses for insiders staying in their current positions, stock options... Canadians may remember the huge bonus offered to Milton, the CEO of Air Canada', when a Chinese company was attempting a takeover. The offer failed. My motto wherever possible is 'follow the money' to evaluate any offer. Unfortunately, this is usually very difficult.
I am overweight AVO and I will not be tendering my shares of a great growth company for $27. I expect there will be another bid or two from majors in North America and beyond.
I am making no accusuations but I am very suspicious that shareholders interests may not be management's highest priority.
Congrats to all longsuffering shareholders.
Ed, the old guy