To: richardred who wrote (3952 ) 6/6/2015 9:38:06 AM From: richardred Respond to RE-OMG The risk arbs are in. The stock now is now trading slightly above the offer. With the stock in PLAY AND A formal deal on the table. I'm holding on to my shares for a higher bid or WHITE KNIGHT. A look at the OM Group sale featuring SpringOwl OM Group is getting taken out by Apollo Group and Platform Specialty Products - with shares up 30% over the last week, not all shareholders are happy. It seems the activist here, FrontFour Capital, is getting a raw deal as well. They went active in January and are getting taken out at a roughly 15% premium from the day it went active. FrontFour wanted cost cuts and buybacks - suggesting the fair value could be $60 a share, versus the current $34 buyout. But SpringOwl has come out against the deal, which comes comes as its cohort Cove Street Capital has come out today vilifying the deal . (i) a value-destructive M&A binge at a cost of approximately $1.5 billion, (ii) woeful historical ROIC and ROE measures versus the Company's Proxy Peer Group over one, three and five-year periods, (iii) lackluster EBITDA margins as compared to the Company's Proxy Peer Group, and (iv) a seemingly bloated SG&A structure. turnaround of OM Group in the future. Of note - the buyout was signed before FrontFour Capital's two board nominees were announced. On the board right now is a former Apollo partner. activiststocks.com
