RE:RE:Would shareholders be upset with $0.70 buyout?malx1 wrote: malx1 wrote: Might happen. Then they may increase offer to 0.75 or 0.80 in hopes of appeasing shareholders....... The time to sell entertainment assets is during an economic boom, so the timing of a potential takeover here is not ideal as we face looming recession with the consumer maxed out with debt and falling real estate prices. If only a single bidder for business then there is the risk of a bid that undervalues TNA. Insiders own 93mm shares so 32mm in the hands of retail shareholders says there's only $21mm on the table for mom and pop.......... Time will tell. Be ready for a low bid as starting point.
Point out where I was wrong after posting this price target for readers here waaaaay back in early September. Very negative group here now splitting hairs. Second offer sounds shaky. May fall through. Fortune Gaming might have trouble getting financing.
Just to clarify, Fortune's bid cannot be conditional to financing to be considered a "superior bid" per the agreement with Maverick, so that statement is not factual. Maverick has until tomorrow to respond (match or raise bid) so we will see where the dust settles. Fortune can also match whatever revised offer comes from Maverick. The U$0.605 offer implies 3x EBITDA valuation which is still very low. A buyer coupd still fund the whole acquisition with 100% debt, so still a bargain for Maverick or Fortune at these levels.