I thought they were going to take odd lots first (less than 100 shares) and that others may or may not have all their shares boght back. Sounds like a eaw deal, something is not right. Plus, why would they go through with this when the pps has dropped to 18.18? I sold mine at 18.79, right before it tanked. Don't trust this and it seems like too much of a hassle to me.
I agree that selling in the 17's is not smart but I think stops got hit. Like I said, if Oaktree doesn't offer higher and Jakks starts buying shares @ 20, nobody will want to buy them in the near future. Their cash on the books is very important to any potential buyer.
Down pretty big the day of the announcement, and then down again the next day, although not quite as much. It still doesn't make sense, why would you not hold to see if Oaktree or anyone else would offer a higher price, and if not take your chances on the tender offer. Instead people are bailing at 17.xx? I don't get it.
this will be interesting to see how it plays out. They announced that the tender has commenced, but the facility ( forms, etc) to do it have not been made available. Wouldn't a suitor want the cash? Holding tight but with stop limit loss in place.
a result of further investigation seems to indiacte that any holder of record who tenders prior to 6/26/12 is all that is necessary. Anyone who holds shares in steet name ( brokerage acct)
needs to notify their broker to handle the paperwork. I confirmed this from Fidelity
Thats why I'm smelling manipulation. The only reason to move the price lower is to get in low and sell for the tender price. Question is, which I asked in a different post, who are the people selling at these prices? I can't figure it out.
There's no manipulation here; its a short term risky attempt to get Oaktree (or other potential bidder(s)) to make a higher offer. Part of Jakks appeal is that they are so cash rich and I'm sure that Oaktree is expecting to use this cash in the purchase process. Instead, they're threatening to use this cash to buy shares at an inflated price. As soon as Jakks purchase one share at $20, Oaktree will probably leave and sell off all their holdings. The good news is that if they buy the 4 million shares, it the long run it will help the stock price. That is, if the company makes a profit.
<<why isn't this trading higher? what's to lose with the 20 offer >>
Not for all the stock:
"the Company expects to purchase approximately 15.8% of the shares tendered by each tendering stockholder, after giving effect to the purchase of all shares validly tendered by odd lot holders. As such, the Company expects to accept for payment an aggregate of 4,000,000 shares at a purchase price of $20.00 per share, for a total purchase price of $80,000,000, excluding fees and expenses related to the self-tender offer. The 4,000,000 shares expected to be purchased in the self-tender offer represent approximately 15.4% of the Company's shares outstanding as of May 24, 2012.