GREY:ISYRF - Post by User
Post by
mrmoribundon Nov 14, 2019 10:48pm
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Post# 30354338
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Another commentOne thing that bodes well for the possibility of a competing bid is that LTRX does not have a big balance sheet. In other words, even though LTRX has a right-to-match, they might not have the stomach to go much higher if another bidder appears.
If ITC were being bought by Google (Alphabet, actually) then what would be the point in anyone else taking the trouble to prepare a competing bid? Google would just match it because the funds would all come from petty cash. But with LTRX that is not so clear. If some private equity firm came along with a bid of, say, $2.10, it's very possible that LTRX would simply choose not to go that high, i.e., let it go and take their $850,000.
With the termination fee it would cost the private equity firm $2.14 per share. Take out all the public issuer costs. Factor in all the good things that are going on. I'd be surprised if some potential buyer out there isn't going through the numbers right now.