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Cypress Semiconductor Corporation Message Board

  • village_idiot_mayor village_idiot_mayor Feb 21, 2012 12:02 PM Flag

    The Likely Scenario of ANY COMPANY that goes from Public to Private.

    This is what usually happens when any company goes "private!"

    If the Company has a Top Executive that owns the majority of Shares and has a Board of Directors that is beholding to that Top Executive they will probably create two classes of Stock--"A" Stock and "B" Stock.

    The "A" Stockholders will be the minority stock holders and they will receive a tad more in Dividend Payouts in exchange for giving the "B" Stockholders less Dividend Payouts--BUT, allowing the "B" Stockholders to have MORE votes than the "A" Stockholders.

    That LOCKS in the complete control of the Company to the "B" Stock Holders to do as they wish with the Company.

    After a few years the "B" stockholders decide to go "private," and offer the "A" stockholders a price for their shares--usually about 2/3 of the actual value of the Company.

    If the "A" stockholders get "antsy" at the offer the "B" stock Holders will ante up maybe 1/2 % higher--!

    The "A" stockholders have to accept it or get NOTHING!! LOL!

    After a few more years the Private Company sells off the bad parts of the Company and keeps the good part for themselves.

    Bottom line--small shareholders get screwed.

    Onward christian soldiers marching to more wealth and setting up alias accounts in the West Indies to hide the "rake-off!" LOL!

    The Mayor CBS/cbs

 
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