1) First we have heard that the company is being shopped around
2) Very favorable terms for PWER management and ABB, not for PWER shareholders
3) selling price (less cash) is $4 per share which is no premium to current PPS prior to announcement
90 million speculators today are banking on a revised offer...
pwer management have been talking to abb for years according to press conference today. Has pwer BOD deleted all references to change of control removal from positions in management contracts? The current ceo of pwer hired a person years ago to improve pwer logistics, since they were air freighting parts to customers. Turns out that, in my opinion, the new logistic employee couldn't spell logistics! It appears buyout is a way out for the ceo, however the owners of the company shouldn't get the leftovers. I oppose the current price as inadequate. $8 is more reasonable .
abb management are preaching what agreat deal this is for abb shareholders.sa
I too think PWER is worth ~$8/share [1.3 times annual RE trough sales ~$700M + $100M for the Power div + $265M net cash all divided by 155M shares]. But it isn't as if I felt so strongly about PWER that I was buying more PWER last week at $4 either. Congrats to ABB for getting a good deal. Do I feel robbed? No, I feel happy I have some more money to put into some of the other bargains I see in the market.
Hopefully we'll see a bidding war and get more money for PWER. But that is the only way we'll see a price increase, not from a lawsuit. Every buyout for a decade has attracted a dozen of these law firms, but it never comes to anything.
Don't believe it? Just ask an ambulance chaser, er law firm, for a list of the companies listed on a major stock exchange where a suit has gotten their clients one thin dime more AFTER expenses.