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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Pigboy who wrote (17412)	7/26/1998 10:56:00 AM
From: Bill	Respond to of 29386

<<If someone offered to buy IOM (which has been pummelled) at 9 bucks a share, are you saying they have to take it? >> According to SEC rules, management (i.e., directors) have a fiduciary responsibility to shareholders. Were there a $6 offer on the table for a company trading at $2, representing a 200% premium over the current price, management would have a responsibility to accept it. With respect to IOM, the premium is much lower in the example you cite. At $9, this represents at 58% premium, which if rejected the board could argue wasn't as good a premium as could be obtained in the near future. Of course it is possible that ANCR's management might think they could top a 200% premium in the near term, but this would have resulted in the resignations of outside financial experts who are charged with responsibilty for "fairness opinions". So, net of this: there is no offer in that neighborhood and there will be no hostile takeover. The market has lost faith in this company.