1) I agree that the current offer is completely inadequate
2) I don't see any benefit to any shareholders, including senior management to accept this offer. Why do they want a boss? Why do they want the takeover completely financed as debt--adding significant risks to their future? Why do they want to be controlled by a private company in a completely different niche market?
3) I am very uncertain that the warrants will simply disappear in these potential circumstances--perhaps they would have to be translated or converted into private warrants and remain in effect. I don't know for sure, and no one I spoke to knows for sure. This paragraph is pure speculation, but don't assume the warrants disappear in this or any other transaction. Don't ask for further explanation cos I don't have one, and I could be wrong about this. If anyone knows better please help. Anyway this is just window dressing at the moment to an obviously inadequate offer.
4) Look for a news release response to this offer in the next few days. The subcommittee of the board to decide this matter has to NOT include Paul Motenko and Jerry Hennessy because of the exclusion of their shares, by the design of the offer from Pizza Loca to not include their shares. If Pizza Loca needs Paul and Jerry so badly to complete this deal, why do we need Pizza Loca?
5) Even if this offer is not successful for Pizza Loca, and I doubt it will be, Pizza Loca remains a winner--look at the enormous publicity and attention brought to our company, and the value of the shares, including the shares owned by Pizza Loca already, were higher today then a few days ago--and tomorrow's price is hard to predict--anyway, the publicity and attention is worth lots to us shareholders and our company. And the incremental revenues expected formthe 3 (or more?) breweries opening this year will receive atetention as well.
6) Pizza Loca is smart to recognize the value of CHGO--nice compliment. They should keep their shares and grwo with us.
7) Perhaps it is time for a poison pill package to cut off absurd offers like this before they get to the table. Serious offers considered only.
8) This all just represents my own inadequate and juvenile understanding and opinions--don't make any investment decisions based on any of my rambling. |
