He also made a point to say that, they Cerberus leaked the news that Ruger was looking at the books. An obvious slight that Cerberus was trying to generate media interest and draw out bidders. I don't think anyone will buy FG it's too expensive and none of the big guys will touch the financing. So DAT will be proven wrong once again. No secondary, no reason. Way to go LOSER!
If SWHC made the same announcement the stock would jump 25%. I think an acquisition and debt issuance is baked into the stock price. Ruger's Chairman did Cerberus dirty today...any bidder will be hesitant to pay any kind of fair price at this point. I would hate to be the investment banker that promised a big multiple to Cerberus.
This makes sense and jibes with Cerberus' very public announcement to sell to an affiliate. If an effective sale process was taking place, no need for an affiliate to step in and bud on the assets. I think Cerberus knows that no one else will be bidding, and thus have set up a mechanism to make sure the assets can be sold without a conflict.
This is good news for swhc shareholders as there may have been a question about swhc paying too much. It would be cool if swhc paid a divvy to its shareholders and provided for a regular quarterly divvy, just like Ruger.