Dear Pravin - hope you don't mind if I do not agree with you on two counts. When Mr House agreed to take over the helms at BAY, the share price is lo 20s. So, while he may have disappointed a lot of people here, especially the oldtimers, $38 [as the base # - one can certainly argue higher or lower,] especially if one uses Paul's argument, i.e., relative to COMS, CS, NN, or even ASND performances of similar time horizon, personally I don't see Mr House should feel shameful.
To reiterate one of my analogies, look at what happen to WCOM despite the initial cool reception to WCOM/MFS deal. Ok, I understand some of the people are more into option games. In that case, unless they have a longer time horizon, indeed they may lose out. In essence, that is no difference from daytraders, one makes a bet on the short term movements of the stock. It is bad enough for the cos these days who have to be micro-managed 13 weeks at a time.
Finally, Mr House has the fiducariy duties to maximize shareholder values. So, in case there is a counteroffer, he has to consider it. Again, using British Telecom/MCIC example, nothing is ironcladed.
Best, Bosco |
