I talked to Amy Bolding this a.m.
Kind of a mixed bag was what I brought out of our conversation. As has already been posted on this thread, she said negotiations were in effect when DRNK was trading below $3, so at the time, she says, the offer appeared to be good for that reason alone. She did say, however, that the co. will be filing a 8K shortly, detailing the details of the agreement, stipulating the minimum valuation that DRNK holders will receive for their stock.
She went into a lot of detail trying to explain the upside for Cable Car's brands and what not, and from that perspective, this is good, but who benefits from that would be the current DRNK mgmt. that would stay on running the new division of Triarc. This of course doesn't do a lot for your or my wallet, unless you are very optimistic on TRY's future. And in doing a admittedly small amount of DD on Triarc, I can say it's not a co. in which I'd have any interest investing in.
I did again emphasize the discount from yesterday's close at which the acquisition would be valued at, and she said that the 8K would clear up some of the questions, so we'll see. Less comforting, though, was that she made the point twice during our conversation that the majority of DRNK's shareholders had a basis of $2.50 or under, implying that we really should be looking at this as a good offer. Right now, I'd have to say WRONG, but I will try to keep an open mind until we get the details. |
