semi-rational thinking1) offered price is 0.63
2) we believe Torstar is worth more
3) capitalism dictates that businesses invest some money to make more money
4) one party might say, why let Nordstar spend 0.63 to get $3.00? I am happy
to spend $2.00 to get the $3.00.
5) if we are correct in our valuation then there should be a higher offer
5.5) present valuation might not factor in future valuation; maybe 0.63 does?
6) maybe it is the future prospects of the business that might depress buyout interest and price
7) offering the company up for sale during a market crash is a puzzler
8) maybe it is meant to stir up maximal interest
9) maybe a pension plan will make a bid
10) Star subscribers and the general public should put together a competing bid (I mentioned this a while back)
11) I am no strategist, but I would guess that strategists like to think ahead by several steps. Let's set aside the questionable sale of Harlequin for now. Let's assume minimal fraud. Let's assume fair dealing and everyone abiding by market rules and fiduciary responsibilities. A lot of effort was made to tidy up various elements: the biggest one being the pension overhang, sale of various properties. All of this cleaning up, let's call it, surely cannot have been to liquidate the company 0.63?
12) The company was set up for a better payout/buyout from a different entitity (Teachers' Pension Plan?).
13) The Nordstar move allows the shares to move from weak hands to strong hands.
14) The final move allows the shares to move to their ultimate destination (the Big player).
15) If you think about it, it does seem unlikely that Nordstar is interested in the newspaper business.
16) Torstar Corp. is involved in a lot of businesses which might offer (get ready for it) synergies with the other investments held by the Big player.