RE:RE:RE:RE:Not quite over yet - any competing bids?Strategically this deal makes all the sense in the world for Kubota. Looks like AJX board threw in the towel and explored strategic alternatives, an outcome that was expected if the company wasn't in a position to hit break even by end of year. They used a third tier investment bank so not likely canvassed the strongest bids and its possible others have been sitting on potential bids until there a public announcement was made to see what the opening takeout price would be. Raven went through a similar exercise but no other bidders emerged.
All in all its a disapointing outcome for AJX shareholders, a company so full of promise yet seemingly always one step behind. I think they've been doing the right things but getting traction was just taking too long. Still $0.75 is a bargain basement price for this company considering the value it would create for any OEM acquirer. It won't take much for a Kubota to implement this tech accross all their machines and even offer after market upgrades similar to what Deere is planning to do. So internally once integrated the true value of AJX might be closer to $2.00 - $3.00 today and higher over time. Do I think other bidders will emerge? Yes. Possibly Komatsu might view this as such a drop in the bucket value that they'd be willing to step in to acquire the tech that they are sorely lacking. Even Mahindra, AGCO could bid and don't be surprised if CNH decides to take a swing and add a company that holds patents that its latest acquisition Raven is beholden too. The break fee is 5% of the deal value so fairly standard and it isn't enough to deter another bidder. I'm going to hold on to my shares and see what happens.