"(Reuters) - SunPower Corp might have to pay a $42.5 million break-up fee if it accepts a bid superior to French oil company Total SA's offer for a majority stake in the solar company.
Total offered to pay $1.37 billion last week for up to 60 percent of SunPower.
In addition to the break-up fee, SunPower could also be on the hook for up to $2.5 million in out-of-pocket fees and expenses incurred by Total, SunPower said in a filing with the U.S. Securities and Exchange Commission on Tuesday.
SunPower could avoid the fee if Total agrees in writing to reject the payment, SunPower added."
Where the hell does the board of SPWR get off deciding what price us shareholders will accept and agree to a 42.5 million fee if we want more?????????????????
I would have. And if you think the institutions who have been killed in this name for three years now won't take this opportunity to get some of their money back in a stock that is so thinly traded I'd say you're mistaken. They can unload a big chunk and not have to worry about causing the bottom to fall out (again).
Long run, I believe this is a good thing for the company. Those of us who remain (and I certainly will keep holding it even if I do trade in and out) will have a very strong hand holding a huge % of shares. It confirms our belief that even the oil companies know this is undervalued. I'd love to know what Total's internal research shows they're going to get out of the deal eventually... And it will open up solar opportunities we could only have dreamed about before.
Did you even think this through? First off, I am sure its not uncommon for this fee. Total is just protecting themselves of all the upfront costs they just went through, and dont want to see a last minute by SPWRA of shopping the company around for a higher bidder. If they find a higher bidder, then its good for us as shareholders, so dont sweat it. Its not like they are going to accept a higher bidder of say only $5 million more, then pay the $43 million in fees. If they accept another bid, it would be a lot more than the $43 million fee.
What does it mean by TOTAL to buy 60% of SPWRA? Don't we hold more than 60% of SPWRA? Yahoo finance! says that only 6% of SPWRA is held by insiders and 84% is held by institutions. SO does this mean most of institutional holders will sale their shares to TOTAL? Any smart people in this board? Please explain.
This tender offer will be oversubscribe in my opinion. Most likely, the shares from the institutions will be enough to meet the 60% tender off requirement. Without Total's investment, SPWRA will find it difficult to compete on larger projects when the Chinese establish more traction in the USA. Chinese companies have easier access to financing which they can bring to any business negotiation. SPWRA is a very good company with lots of potential, but the industry is still very reliant on subsidies.
any would be buyer next in line would know that this would be part of their package to purchase SPWR. A bidding war is always nice for shareholders. I dont see it happening personally. TOT's package looks and feels pretty tight with several goodies for SPWR. THis was obviously a collaborative effort and in no way hostlie. SPWR gets financing, stabilization to its volatile stock (with so much stock now off the trading table, and the ability to trade as a public equity for at least another 2 years. Shareholders benefit here as I see it. Managemenet didnt have to sell us out and they didnt. SHorts no longer get to play this like a fiddle and earnings will now mean something --- it has room to fly now