A voice of reason yay.
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Things not too bad ….Herald market update
Sky Network Television was down most of the day before rising 3.8 per cent to $2.84, picking up some ground it lost yesterday with its surprise announcement that the network wasn't looking to be acquired – but to be the acquirer.
No, it isn't a done deal but even if it doesn't go through, no matter how you look at it, SKT have inflicted unnecessary reputational and financial damage to their company. If they turn the deal down and announce some capital return to shareholders, they might recoup some of the losses, but they still wouldn't have covered themselves in glory.
And, heaven forbid, if the deal goes through - even at a rock bottom price - I remain firmly convinced that many people and institutions will exit their positions. I predict $2 per share if they proceed with the deal. We'll see how many holders remain chilled if that occurs.
Yeah that is very true.
If Sophie gets the deal for a ‘bargain’ at, say, $50M (plus inherit the debt) it would be interesting to know why it goes to a vote.
Ass covering by the board?
Doesn’t really instil confidence if the board sign off on a deal but then want to make sure there is no blow back on them if it turns to sh1t.
Well, good luck with that. History is littered with companies overreaching and their "good deal" turning very quickly into albatross's around their necks. I'm not saying that will happen, but SKT Board haven't yet done enough to earn confidence of shareholders in their decision making ability. Allowing their Chairman of the Board to not even live in the country is a case in point.
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