Probably it'd be better if they sold it all at once. Nothing like a series of small sells to drive a stock down.
Early this year--I think it was in January--we had a rather surprising day with PLAT. The company had (as is its wont) bought a British firm in December, for stock. By the terms of the agreement, the sellers were allowed to dump their stock within something like 30 days. And they did. At 11:31 one morning. Ooops, a single trade of 2,222,222 shares (which of course printed as 4,444,444): more than 4% of stock outstanding. Pretty stunning, but by the end of the day the damage wasn't catastrophic. Stock was down 1 3/16, or the like. IF this had been spread over a period of hours, or even days, things probably would have been worse. (Actually they DID get worse, but that's another story, and yes, PLAT's just fine now...)
Obviously the trade had been negotiated, and the deal was very well done. I don't, however, think that anything of the kind will be done for IFCI. |
