From the rights offering:
"In addition, in the event of certain business combinations, the Rights permit the purchase of the Common Stock of an acquiror at a 50% discount. Rights held by the acquiror will become null and void in each case."
That sounds like if someone, legally buys shares on the open market, ONVI can turn around and buy them back at half the price! While I can understand the concept of "poison pill" protections, this particular phrase is more like, "theft by taking".
If they wrote up something whereby ONVI has a right to buy back "excessive" shares (those over 25%) at current market value (or some formula, like the avg price over the previous 30 days) if no control/acquisition occurs within 6 months...that would sound fairer/reasonable.
Just seems like a lot of wheeling and dealing by people who have a whole lot more money (and time) than I do.
At present, DGR just wants to raid our piggy back (to hell with the shareholders/employees).
The BOD and/or executive officers want to keep their cushy jobs/salaries and hope to turn a tiny profit whereby ONVI might trade beyond cash value (and then exercise boat loads of options - make a killing - dilute the current shares - to hell with the current shareholders, although we will get a bit of a rise as well).
Right now, I think a buy-out at $4.50 (leaving some cash for continuing ops for 3 to 6 months, before breaking even - if that's feasible), would be great! However, I think that if someone does NOT wish to sell, that they should be allowed to get a stake in DGR (equivalent to their current ONVI holdings) if they wish...then they can ride any potential rise in profit/value from the buyout. This may not be typical, nor desirable, but it would be nice to have such alternatives.
Similarly, HTEI (if bought out) being such a cash cow right now, I don't want to sell for less than 7 (preferably 9 to 12), and would opt to hold on to the future company (in a tax-free transaction/transfer) if they can indeed buy HTEI for something as low as 5 to 6.
Still curious to see what we trade at on Monday. Also, DGR's offer expires tomorrow (along with us getting our "rights" at market close).
I wonder what PR's we will see Monday morning!?
Wouldn't mind another cash distribution for my holiday shopping! Actually, make it in Jan. so that the tax man has to wait for his "cut". Heck, I'm on a dividend kick lately, let's make a qtrly dividend of say .25. (Ooops, that would require profits...) Let's just all split the cash right now! ($5/sh for everyone!)
You misrepresented what I said in my previous msg. I said most of us oldtimers have already figured we've lost our investments in ONVI, not interested in $3.50 now or ever and personally, I many of us do not need anymore tax capital losses for the next several years and therefore, content to sit & watch ONVI indefinately as long as it's trading.
He likes being able to say I bought in at $18.00. Badge of honor. I wish he'd send the money to me next time.
DGR made a fair offer, they could have cinched it by offering to pay the current management team salaries until the money is gone.
You are right. They will never make money.
I may be reading your post wrong but DGR is not a buyer of ONVI, or takeover candidate. DGR is the consultant outfit hired for the next 6 months to help ONVI determine how to get best shareholder value.
I wouldn't mind a buyout at any price providing I continue to hold my shares or value that I have invested. The private buyout by Balmer & Co would liquidate us all - don't want that.
KG-DGR is indeed the bad guy here. D stands for David, G for Glenn, and R for Rob. Those are three names you should not pick to name your next child.
The firm Onvia has retained to help them look at their options is Broadview.
Let me make one thing clear: If the 3 amigo's buy Onvia you will get the sale price. Period. The notion you have of "holding" your shares after a buyout is incorrect. The company would then be privately held and that nice pile of cash would be their's.
Gee, what do you think they'd do with it?