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OCZ Technology Group AŞ Message Board

  • greenype greenype Aug 18, 2012 4:50 AM Flag

    I love it when a plan comes together

    According to theo's sources, talks started on April 2012. The same sources also say STX would be paying $1.14B.

    On June, when the stock price was at the 4-6 range and the share count was 67 million, a buyout for $1.14B would have caused the pps to jump to ~$17, a +240% premium (pps $5). Too much for STX to justify.

    End of June, OCZ came up with a "Equity compensation plan" to be approved on August 13th. This plan would add 12,000,000 shares to be granted to employees, directors and other persons providing services to OCZ. This would kill two birds with one stone, it would give the employees a "thank you" from the company and it would dilute shares and thus reduce the premium STX would pay.

    The pps would be ~$14, a premium of +180%, still too much. What do you do? You then talk with a couple of journalist and spread the rumor of a buyout so the price rises to the $6 range (premium of +130%, better to justify). Only then, you release the bomb.


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