Yes, EZ, Saxe's comments are truly an insult & a joke in the eyes of GATE SHs. I don't think that any minority SHs could vote in support of this buyout proposal. As I have stated on the RB thread, the key to how this proposal will come down lies in where Idanta stands on this issue and whether they have been able to acquire "other" interests beyond their common shares that would compensate them for being short-change on that portion of their investment.
I don't have the time, but I would review their holdings of convertible preferred and convertible debentures to see if they have been able to squeeze more return out of their investment over the past year or so at the cost of common SHs based upon yesterday's announced buyout offer. I can't imagine Idanta being willing to get short-changed on their investment in their commonly-held shares unless they have been able to recuperate such a shortfall via other investment vehicles in GATE.
If Idanta supports this buyout offer, I would look into these areas, particularly if I were a hungry lawyer looking for a lucrative shareholder derivative suit. Someone needs to learn where Idanta sits on all of this. It is not evident where their support lies from the news wire. Nevertheless, I am sure the lawyers are following this one closely. There are too many areas, IMHO, that are ripe for litigation; too many areas where there are obvious conflicts of interests. IMHO, if individual SHs squeak enough, or enlist a law firm, ACTL will be willing to cough up a more attractive offer. Don't know much, but it still would likely be less than fair value. I think the company is worth b/w $12-15 per share. No hard basis, just some quick rough estimates of value at this particular juncture.
Gotta roll. |
