As time continues to pass, I believe that this far reaching proposal has many hurdles to clear. Based upon conference call, everything is top secret. However, the problem must be, how to make this transaction look attractive for minority shareholders, in order to prevent legal action? The problem for the Chairman is that ZX is a NYSE stock registered in the U.S., and minority shareholders do have legal leverage.
Owning shares of and existing company, then seeing the Chairman propose that the company be transferred to become privately held by the Chairman, in exchange for a non related privately held real estate type company, becomes a legal nightmare if minority shareholders are shortchanged.
I believe the Chairman wants to shortchange the existing shareholders, but is having a hard time concocting an exchange offer which will look like a great deal for the minority holders.
Several funds also own 5 to 10% of ZX, and they have financial/legal leverage to torture the Chairman.
In the end, the company exchange offer is like owning a Mercedes then finding out that the vehicle is being recalled and replaced with a VW, of equal value, as determined by the new owner of the Mercedes?