You have to resolve litigation before closing. This is a game class action firms play when M&A is announced. The typical settlement is payment of legal fees, usually around $500,000, and some minor change in the proxy language that allegedly benefits shareholders. No money is allocated to shareholders only the lawyers who brought the original action. This will be resolved, but I suspect at this point the parties are still haggling over how much legal fees need to be paid to make the firm go away. Hence the motion to ratchet up some pressure on OVTI management to settle.
shareholder meeting postponed to 23rd july brcause one lawfirm filled amotion to adjourn the 9th july meeting on 1st july. lawfirms claimed 29.75 was too low and want a piece of pie.
Only question is who is to blame. If OVTI is guilty it has to pay $28M to Hua. If Hua called it off without good reason, OVTI will get consolation money of $1.00 per share. If Hua can blame any government agency. then Hua will refuse pay even that $1.00 per share penalty.
shareholders will approve. it is the laywers who are trying to get more money from the company and delaying the meeting.
Looks like the street is betting that the deal will be scuttled by the shareholders.
they are prohibited from buying shares after the agreement is signed.
I agree. The only ways I don't see the deal going though...
1. Shareholders reject on July 9th, which with the depressed stock price is not likely.
2. US or China regulatory authorities blocking the deal. I don't know of a substantial reason for this happening unless geopolitical tensions escalate between now and deal close.
4. Hua group backs out. Could investments in China market be hurting them?
The notice of special meeting concerning the merger says that the deal is expected to be closed in 3rd or 4th quarter of 2016, which would be between Nov. 1 2015 and April 30, 2016.
How do "shorts trying to get out" push the price of the stock down? How do market makers "trying to accumulate shares" make the price go down? Both of these things would result in the price going up as accumulating shares = buying and shorts getting out = buying to cover. The stock is owned by 83% institutional investors. And none of the major institutional investors are directly primarily in the Chinese market. So I'm not sure how the China market angle effects the stock price anymore than any other US market stock. Unless as one poster pointed out that Hua group is taking a beating and may not be able to pony up the cash for the buyout. Is that the case? If someone has definitive or at least good information on that please clue us in.
This take over has nothing to do with the Shanghai market, unless the buyers were leveraging bullish positions with their funds and lost their Mao shirts. Ballots already sent out for meeting, would be highly unlikely for deal to be overturned by the stockholders without an additional bid on the table.
Shanghai stock market is collapsing very fast losing 30% in 2 weeks. Every company in Shanghai is defensive mode and absolutely no shape to buy other company. This deal is probably dead with Hua giving excuse that they cannot get Chinese government clearance. This excuse will allow them avoiding the cancellation penalty. We will be ack in 16-19 very soon.
They are all being replaced by cucumbers. Trust me.... that's Yiddish for something, I'm sure.
Anyway, it could be worse, they could all be replaced by water melons. Wait, who cares what happens to the employees. Only the shareholder counts. Too bad there are none left.
To purchase ISSI and OVTI are the same invest group. ISSI price has been increased from $19.25 to $23.
ISSI stock price is 22.20 with 3.5% profit. It will take the same period to finish the deal.
OVTI stock price 26.20 with 12% profit.
This is a done deal. just need time to finish the deal.
A Chinese company buys a USA company. They will keep most of the employee to work for them. They just change the ownership let it become a private company. no stock trading any more.
Even an American company buys another American company. They will not fire everybody.
ISSI and MIG are the same situation.
Even my dog's dingle berries smell better then this whatever. Typical of thieves with no honor.
May they rot in you-know-where, and give you-know-who, oral you-know-whats for all eternity.
Anyway, this whole time-line is nothing more then a holographic projection so the little weasel doesn't really exist. And the projectionist is about to replace him with a cucumber.
And there is nothing to this "deal". Sounds like a bunch of old toots lost their little blue pills and are just making excuses for their inability to perform.
Let's see, mental blocks to adaquate performance levels, propensity to endlessly move little piles of paper around on the desk top, sounds like victims of OCD who refuse to take their meds. No wonder they are all being replaced by cucumbers.
Is it right for the management to receive compensation upon the sale? They are not losing jobs. This is different from a merger with a real company.