$46.50, Jeff, you aren't serious with that number? That like a 300% market premium. Premiums usually go anywhere from 30 to 50% sometimes more sometimes less, if company is currently not reflecting inherent value...
IBM could probably start buying like widefire and grab 1/2 the company for under 25, 30 bucks, max...then take over at 32, 33.
Most likely, they would come with a bid in the 24, 25 range. Question, if someone offered you 25 for your shares tommorrow, would you take it, knowing that youcould take your cash and invest in something else, seg or qntm?
This is more a discussion of takeovers,etc. but I would guess if a deal occurred, it would occur at a 30, 40% premium to market place, max.
This is why some companies come with a poison pill so they dont get take over in downcycles, which WDC is clearlyin.
Regards,
Steve |
