Ira Vine: re: HERB and tendering. You asked why so few shares have been tendered. I can tell you why I haven't tendered:
1. Every time I tender my broker charges me $38. I'm still building a position in HERBB. I only want to tender once and get charged once.
2. What's the hurry? I still don't have all the paperwork on the deal. I haven't been notified by the company or by the brokerage firm saying I must act.
3. If I get discouraged (read: panic!) or if I just want to sell before the buyout, or if I want to trade the position (sell today, buy back tomorrow), I want those shares to be in my account. No sense in closing off these options by tendering too soon. (note: there's not a problem in recalling tendered shares if you want to sell before the deal closes, I just would rather have shares in my account.)
You asked if it's possible that the owner would make an offer knowing he wouldn't get all the shares he needs. I suppose it's an act that's theoretically possible, but very, very unlikely imo. Just the opposite. My opinion is that these guys know before they announce that they are likely to get the shares they need. From our perspective, we can read what the media and posters say, and pretty much separate grousing ("I'm voting no. He's stealing our wonderful company and we're getting robbed." ) from knowledgeable assessments by analysts that the deal will have trouble being completed because not enough shares might be tendered. I'm trying to recall one instance where the stockholders surprised the media by voting no or refusing to tender. There've been instances where large shareholders have made their displeasure known after the deal was announced and where the deal collapsed or changed, but I can't think of an example which applies to HERB. Namely, we're into it a couple of months now, I think, and there's been no outcry from large stockholders or analysts. IMO, the deal is going to be done. My fear is that the buyout price might be reduced though.
Paul Senior
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