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Zoltek Companies, Inc. Message Board

  • zoltyfan zoltyfan Jul 12, 2013 1:05 PM Flag

    Quinn & Zsolt Negotiate-- But Who Has Upper Hand?

    Given the recent firming of price, is that indicative of Quinn or his partners acquiring shares?

    A key question to me is:

    Does Quinn or anyone else for that matter have the capital and stomach for a hostile takeover? That is, to get enough shares to gain control?

    If the assessment is not, then it seems like Zsolt has the upper hand and simply outwaits Quinn until he gets tired and goes home (and the price sinks unless another suitor has been pulled out of the bushes... a possibility.)

    Or, if the assessment is that Quinn can successfully threaten taking control, then perhaps Zsolt will negotiate something, particularly including a continued role of influence for himself (rather than some fat payout for us shareholders).

    While it takes speculation to answer these questions, they are, in my view, the ones that need to be answered or whose answers will soon unfold, that will help reveal how things are most likely to proceed from here....

    Sentiment: Strong Buy

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    • If Quinn and his partners were acquiring additional shares, they would need to make disclosures immediately now that they've disclosed an ownership stake 10% of the outstanding shares.

    • Right now a truce is in effect while an investment bank, hired by Zoltek, evaluates its options. An acquisition by QP is one option along with others scenarios that may include other outside buyers . Zoltek is not beholden to accept the options submitted by the bank. If they do not then QP could initiate a hostile bid. What will matter is the large institutional holders--whether they will opt to tender shares to a hostile bidder or to stay with present management will depend on what is offered by each. Right now that is off the table until Zoltek gives the message that they will not accept what the bank proposes. We will know only afterward as Zoltek is not required to inform us if they decide against the advisor's advice. So we wait.

      Sentiment: Buy

      • 1 Reply to hmarek4
      • Your perspective is very helpful! It seems that us shareholders might be cautiously optimistic that the investment bank will generate all possible options that should maximize shareholder value. This seemingly should include potential suitors internationally that could unlock value, by going outside the US.

        Just as the US government found apparent value in some of Zoltek's high technology and could use it without reimbursement to Zoltek, perhaps some international interests would find value that could be unlocked and captured now. That is, such foreign interests do not have the same ability to borrow or expropriate such value and might be willing to pay for it, thereby increasing the options Zsolt will have before him.

        Unfortunately, I am not sure we shareholders are going to necessarily know of all the options that were identified and presented that would help inform the true potential value of the shares that we own.

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