ST Alpha - "The counterpoint is that all the investors in that company benefitted. His actions generated a high valuation of the company. The flipside of course" (Reading a Post)

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In response to "It's a great example of how the market gets driven by very few people, many of whom are dangerously reckless. -- nm" by David

The counterpoint is that all the investors in that company benefitted. His actions generated a high valuation of the company. The flipside of course

Posted by pmb (aka pmb) Nov 18 '14, 15:31

is that it was a short term play that a) may have undervalued the company for the longer term (though if that was the case the board should have rejected the offer) and b) may wind up costing people jobs in the merged company (redundancies) just for the sake of filling this guy's pockets. It's the old corporate raider formula in new clothing.

Responses:

[deleted] 5
- Of course, but this was an acquisition that he essentially orchestrated not for the best interests of the company, but for his own. - pmb Nov 18, 15:48 4
  - [deleted] 1
    - Again, yes. I'm just trying to make the point about why this "feels different". He wasn't really looking to be the purchaser (though he was willing - pmb Nov 18, 15:58
  - How is this different than the 'old' version of the hostile takeover? -- nm - Ender Nov 18, 15:51 1
    - Really, it just never got that far. And there's a reasonable chance it wouldn't have (it's expensive and there are often defenses available to the - pmb Nov 18, 16:00

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The counterpoint is that all the investors in that company benefitted. His actions generated a high valuation of the company. The flipside of course

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