Jeff was foaming at the mouth, thinking he was going to take all of Emmis (liek a thief in the night) for a paltry $2.40 per share. Hmmm, what person on this planet knows more about the future prospects of Emmis and what it's worth then JS? If he wants to buy the company for $2.40 a share you can bet your sweet Jewish kosher a$$ the company is worth a HELL of alot more than that!!!
Only a fool would sell right now- either Smulyan gets to make off like a bandit and take over at $2.40 per share or he doesn't and the market eventually figures out what JS already knows= this company is worth well in excess of $2.40 per share. JS is not stupid, he is very shrewd, I can assure you of that.
If it were a done deal then they would have to pay 2.40 but since it isn't a done deal they can buy at 1.60 now and make it a done deal at the meeting tonight and the shares they bought would only be 1.60 instead of paying someone who held for 2.40
You guys don't get it. This is not a done deal. If it was a sure thing buying at 1.60 instead of 2.40, then why aren't we doing it? RISK! There is no way they can put money on the table they can't control. Someone would lose their jobs if the deal failed, get it?
And if it is a sure thing than why the delay?
Your theory pans out only if the deal goes through. If the deal fails, they don't have to pay 2.40 for any shares. If they start buying for less in the open market, they would be stuck with an investment they can't sell, as the shares would be worth only $1 share, not a good move. The risk is in our hands not theirs.
Oh yes it does make sense, a tender at $2.40 still means you have to pay the shares you don't own $2.40...but if you can buy them cheaper in the market at $1.50 then that means less shares that you have to pay $2.40 for. It would lower the cost of the deal to them. My question is could Alden or the preferred holders be buying or selling stock while in negotiations with EMMS - if so, that would constitute insider trading - not that this SEC has the balls to prosecute.