Laurentian Bank of Canada T.LB

LB's MANAGEMENT/BOARD OF DIRECTORS FLIP-FLOP

[BLUEBERRY5]

LB has probably received at most a low $50 range offer, which, shall it be the case, represented close to a 70% premium on the closing price of its shares the day prior to the announcement of putting itself up for sale on July 12, 2023 and rejected it.  According to The Globe and Mail, Laurentian Bank of Canada has received a bid from an undisclosed rival bank, which has helped spur the sale process.  It has however terminated its strategic review on September 14, 2023, failing to conclude a sale.

Given so, the stock has tumbled so far in the $31 range, leaving in the lurch all shareholders who bought from $33 (the approximate closing price on July 11) up to $48 on July 12 and who haven't sold their shares expecting a sale was to happen.

Assuming that indeed a $50 offer was presented, LB management/board of directors are now on the hook to create shareholders value in order to attract a buyer to pay $55, $60 or more per LB share, otherwise, the bank will be sold down the road, perhaps in 1 or 2 year(s) for likely the same price of the said to be, approximately $50 offer it has received.

The wrongful behaviour committed by management/board of directors is that the offer received has not been disclosed, which is inappropriate for any public company.  Management/Board of directors have no right to solely decide on the basis of greed, that the selling of the company must meet an offer price that is arbitrarily meeting their wishes, otherwise, they dont run a public company, they run a dictatorship.

LB's sale is just postponed in my view.  Shareholders will come to realize that management/board of directors have no choice but to undertake a formal sale or a merger.

[Investing4Life]

"LB's sale is just postponed in my view." You may be proven right on this point. When conditions improve ... or if bank's turnaround plan gains serious traction and makes a deal more attractive ... an irresistible offer may come in. It would be great to know more about who was interested and how serious they were. Scraps of information may come out over time. But as you suggest

[Curious777]

Not impossible that Rania Llewellyn (President & CEO) was in a position where it was impossible for her to accept a “low” offer without the risk of loosing her credibility… still, she would secretly welcome an hostile offer/take-over… (Desjardins?).  There’s reasons to doubt that her favourite scenario is the one presented on September 14th: As part of the accelerated

[rad10]

Hey - the original suitor can go public / hostile its all good.  Bank the dividends, some minor regret about not completely closing out the position, but there are a couple more chapters in the LB saga.

[Northforce13]

I'm sitting on a gigantic pile trying to figure out what I want to do