Thanks for the reply! I was pretty clear about your response but wanted to add a little more to the conversation. I suspect that several people here didn't read the finer details of Jack's agreement.
Yes that is true as well ( about keeping his votes) but I was answering the general question that was asked: "What is so bad about being an Acquiring Person"
That phrase is specifically used in re the poison pill/rights.
In this case MBLX have worked out with Schuler that they will agree to lift the trigger % from 15 to 20 so that he can buy more stock without losing his "rights" provided he has no intent to attempt to take control or become involved with an entity that seeks control
Again I was only focusing on the general question but I agree with your comments
johnmr12, you are right he would be a very good fit for the board but his background also makes him very qualified to recognize whether or not M is a good investment. His family basically doubled down right after the ADM breakup and then he signed an agreement with the board that allows him to accumulate more (up to 19.99%) without becoming an acquiring person… IMHO, he sees M as a very good investment
The board may have or may not made him an offer, and if they haven’t then they always could, of course if he becomes a board member then he will become an insider and his trading windows will become very limited. I’m not sure I’d want that position unless it gave me a lot of stock (which he already has) or unless it pays very well (which he really doesn’t need). His current status as a 14.9% shareholder gives him a lot of flexibility which he may want as events unfold over the next couple months. Personally I like the idea of being able to sell half and keep half after an easy double then holding the rest for long term growth. Hopefully he doesn’t make that big of a sale once significant news is released but he currently can and he loses a little flexibility as a shareholder if he becomes a board member.
How about a group of shareholders? Perhaps those that commonly discuss said company on internet message boards? Perhaps some group could demand more press releases, a better sales team, the replacement of certain executives who brought the share from a $14 IPO to $3 at best?
After researching his background thanks to someone who mentioned him on here, I would think the company would beg him to have a seat on the board. One board member can't control the company, but I bet he could help them make smart business decisions.
Most boards don’t want to lose control to a shareholder. A shareholder with a lot of shares could force the replacement of one or more board members, they could rally their shares with other large shareholders and essentially take control of the company, they could pressure a sale... An activist shareholder can be a great thing for other investors, especially if the person has a track record of generating wealth, but they aren’t exactly the sort of thing a board wants... IMHO, their recent agreement with him was setup to learn his intentions and to ensure that he can’t build a controlling interest.
Regardless the company appears to be making all the right moves on their own :)
Please correct me if I’m wrong, I got the impression that as long as he's not an "acquiring person" that he is free to use his shares to vote and effect company policy as much as he wants but if he becomes an a.p. then the board will essentially take over his voting rights.
I believe that the recent contract implied that he can now buy up to 19.99% as long as he didn't use those to try to influence the votes or actions of other shareholders… Basically they don't mind him acquiring shares but they don't want to see him become and activist investor.
Thanks for that info. So, would it then be accurate to assume that Schuler wouldn't want to actually accumulate 19.99% of the O/S, in case there is a hostile takeover? If he already owns the max allowable shares, he couldn't buy more.
Yeah - Didn't we all say the same thing between the 1st and 2nd week of Jan when the stock it hi 5's ( as did we) !!!
Only to be slammed on Friday the 13th !!!
Maybe there was something in the works back then and folks were buying on that event and now are buying at lower prices, but there is no real volume to support any pending announcements, at these prices the MM's can just be manipulating..
here's to hoping I'm wrong, but been disappointed so many times with this one