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Prosperity Bancshares Inc. Message Board

  • PB_fan PB_fan Sep 13, 1998 9:30 PM Flag

    Takeover?

    Does anyone think that there are companies out
    there that might see PB's apparently undervalued stock
    as an acquisition opportunity? Has PB's management
    made any considerable stock buy-backs to avoid
    exposure to such threats? After Coca-cola's Home-run-like
    acquisition of Venezuela's Cisneros family's immensely
    dominant and profitable Pepsi bottling operation, could
    this be pay-back time for Coca-cola? Any ideas from
    those of you interested in discussing PB issues
    (instead of just cluttering up this thread with pissing
    contests)?

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    • Too much of the stock is closely held by parties
      who have long resisted KO's overtures. I doubt the
      collapse in price (which I suspect they'd also view as a
      temporary phenomena) would change their position that much.
      But who knows...money talks, and KO has expressed an
      interest before.

      No one else is really a
      candidate, IMHO, if you're suggesting a PEPSI move. PB has
      spent so much time, energy, money building the coke
      brand, I can't conceive of anyone seriously entertaining
      that notion. And KO would certainly intervene, anyway.
      In fact I have a vague recollection that they
      already have some type of right of first refusal, which
      they'd probably use if someone else, like CCE, came
      sniffing around.

      And my apologies for
      participating/encouraging the pissing contests.

    • A hostile takeover is out of the question. I'm
      pretty sure that KO owns about 20% or so of PB. Much of
      the rest is owned by the Staton family. The Statons
      have been involved with KO for something like 75
      years. A Pepsi switch is unthinkable. I agree with you
      that this stock is very undervalued. At this price, a
      friendly takeover by KO or CCE is not impossible.

 
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