Looking at Tuzmans' history and the fact that he still holds a substantial amount of shares
but of course the intention of the offer here is quite clear - why should the PE consortium pay around $200 mln when they could grab the whole company for a fraction of it. And once again I want to point out that no serious PE firm would invest any money into KITD without at least having reliable financials for due diligence purposes.
Because the majority owners (i.e., the top 5 shareholders) control KITD and will not be selling their shares on the open market. KITD is a perfect PE acquisition because they could properly restructure KITD without having to deal with public/quarterly disclosures and earnings volatility. The value of KITD's brands, technology and business lines have substantial value once they are properly integrated and the business is being run effectively.
it for a fraction (as the only alternative would be chapter 11) and did you ever hear about a PE firm which would make an offer for a company without having any reliable financials at place for due diligence ?