Post by
schocor on Jun 05, 2024 1:56pm
Buyout Deal - Alternative - Getting Rooked by Management
Well we finally have that FORMAL - LOWBALL - offer from Fruchtexpress to buy out shares for .09 in early September. This will be a tender offer, you can tender yuor shares and will get .09 in early September. You can withdraw your shares before the take up date ifthe market price is higher or there is another offer.
Management has 15 days to provide us with the reccomendation - I think that should happen before JUne 10th if I have my days right.
When yuo have a small cash rich company like Commander, managements often thinks they can just raid that till for self serving reasons; for example we might see Commander absorbed into another (linked) company management oversees (fireweed, LIFT, etc). This takes our cash in exchange for shares in another company . NO BUENO.
I have doubts about the objectivity of the special comittee at Commander, and am idenfiying a potential risk that shareholders get screwed over by a busienss combination that is not in their best interests.
The fruchtexpress offer of .09 is LOW - make no mistake. It is however preferreable to Management using all the cash on Commanders to explore 3rd rate prospects.
We are best to take a cash offer; it is management job to get us the highest price possible. I reckon .105-11 gets this done.