<<I believe that Leland openly announcing that selling the company is a viable option is a major sign of weakness>>
BigK,
Unfortunately, I am inclined to agree with you, but to a lesser extent. I don't know if he is worried about the future of VVUS, his future, or the current price of the stock. It is possible he just wants to cash his chips in and be done with it without tarnishing his reputation. Of course, the board would have to agree to this. But given the current stock price, if they could get an offer at a price substatially higher than it is now, I think they probably would take it. I am sure this hasn't exactly been a picnic for them, either. I don't know what his motivation was, but it is not often you here companies discuss buyouts before they are made.
On the flip side, he didn't say anything we all didn't know already. They are a small fish playing with sharks. It is very common for these startups to build to a point and then sell to a bigger player. It is one thing to be a small fish in a pond by yourself, but when the sharks are attacking, you need a friend.
I don't know exactly what to make of it. I just know it feels weak. The good news is when dealing with Wilson, you never know if he is acurately conveying the message he intends to.
The saga continues,
Colby |
