RE:GMT exposed Pipestone management dishonest to shareholders"Not sure why Riverstone wants to rip themselves off. "
I can answer that easily Mr .Estevan. As explained before, these private equity firms don't do anything for nothing or for free. There's always a catch and some personal gain to be had. And i think i did mention, that ALL involved, meaning Pipestone mgmt, Bod, StrathCona, Waterous AND Riverstone (i'll leave out GMT for now lol) stood to gain something IF the deal was consumated. So as far as the major s/h go, Riverstone showed their hand when they let Pipestone, of which they are the largest holder, go for nothing.
So ask yourself this question, WHY bring a pirvate entity like HammerHead (of which Riverstone is the majority owner close 90%!!) public through an ipo/spac IF your intentions aren't to grow/expand the company through M&A along with orangic growth? Only ONE reason to do so, so you can MAXIMIZE your profits/gains through a well thought and eventual exit strategy from BOTH companies. And this leads us to Pipestone's demise with this deal. Since Riverstone weren't interested in absorbing Pipestone into HHRS, which would have been the easiest, most simpleast & quickest thing to do.....with absolutely no issues whatsoever because Riverstone is the major holder of both compnies.
But since Riverstone wasn't interested, they bascially threw Pipestone under the bus, sold them down the river & threw them to the wolves for FUTURE considerations. And mark the word right there attentively. What were those future considerations? Most probably an arms legnth handshake deal with the StrathCona/Waterous folks that at some point in time, maybe in the next 24 months, StrathCona would ALSO buyout HHRS .....and get this!!!......at a generous premium for giving up Pipestone for nothing. So like i said, they werent ripping themselves off, they forward thinking looking out for themselves while selling everyone else out. Basically leaving the $10 bill on the floor and rushing to get the 1 ounce gold bar just a step away which was promised to them........
That's MY take on this whole sour situation........
GLTA