Mon, Jul 28, 2014, 4:21 AM EDT - U.S. Markets open in 5 hrs 9 mins

Recent

% | $
Click the to save as a favorite.

Exlservice Holdings, Inc. Message Board

  • Adelantado Adelantado Sep 14, 2011 6:54 PM Flag

    how to lower the price of a share from $ 26 to $23

    When the price is at $26, offer millions of shares at a lower price, say $ 23; that's what today's offering did. What's going on? Why didn't it just let the market set the price? Perhaps management decided to screw the present owners or is just incompetent.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Yes, very odd maneuver. As an investor/shareholder I'd be scratching my head.

      Maybe they did it this way because they were thinking:

      1. if that many shares were dumped on the market at one time it would cause much more decline in the stock price - with daily volume around 100,000 shares it would be difficult for the market to absorb so much?

      2. Because major selling shareholder was dumping so many shares maybe a single buyer could not be found to take the entire block where it could have been entirely handled privately?

      3. If it were just sold off slowly at maybe 100,000 shares a day it might also cause concern as the major shareholder would need to be filing Form 4's with the SEC daily for about a month

      4. Maybe this had already been planned and they took the average closing price for a period of time before announcing? Figuring that would have the best chance of selling the entire amount of shares without too much disruption?

      In any case, here's who sold the bulk of those shares. Company just tagged along offering up some shares of it's own to raise some money in the process as well.

      http://www.insider-alerts.com/Data/20110920/0000950142-11-001637.xml

 
EXLS
29.82-0.18(-0.60%)Jul 25 3:59 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Puma Biotechnology, Inc.
NYSEFri, Jul 25, 2014 4:01 PM EDT
Sohu.com Inc.
NasdaqGSFri, Jul 25, 2014 3:59 PM EDT