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Actuate Corporation Message Board

  • help4all1332 help4all1332 Nov 6, 2008 3:20 PM Flag

    A deal is probably on the table

    Think about it, why ACTU wants to burn most of its money when the future is not that clear for any company. ACTU management, especially CEO has a lot of interest in ACTU share price. ACTU CEO has been working for ACTU for most of his productive life without selling any share so far. He has chance to sell close to $9/share last year but he didn’t.
    This is what I think is going on. There is an offer for ACTU on the table but buyer wants to get a good price while ACTU shareholders and management should be happy too.
    A way to accomplish this task is to set ACTU selling price at $9/share or about $9 * 60 mil share = $540 MM.
    ACTU 60 MM shares are divided in 3, 20 MM.
    First ACTU buys about 20 mil shares around $3.30/share with tender offer. The buyer also buys 20 mil shares around $3.50 average in the free market. The last 20 mil is paid by buyer at $9/share.
    Cost to buyer will be
    20 mil * $3.30/shr + 20 mil * $3.50/shr + 20 mil * $9/shre = $316 MM or $5.26/share.
    However ACTU will get $9 * 60 MM = $540 MM.
    The numbers may go higher and lower depending on the market.

    Buyer will be very happy. ACTU shareholders and management will be happy too. Current sellers will be miserable and unhappy.

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