Gore cancells and agrees to pay the penalty. PBY will have to show $1 per share in earnings for the one time special gain. PBY should be in play again from another suitor. Shares are down 10% in extended trading...i am a little surprised, i can see the drop if Gores refused to pay the cancellation penalty but am surprised that with the $50 million windfall, OBY is not actually up in after hours trading.
only a few thousand shares traded AH so i wouldn't put much stock in the last print. however, there have to be some big shareholders who are going to be looking to dump tomorrow so it could trade lower still. i agree that the fact that PBY got the $50MM should be a good thing and it will be back in play. the bankers will have to do a little more work (hopefully they started it over the past few weeks) but the PBY bake-off part 2 should be underway right now.
shorthigh-----I was really surprised they just paid the $50 million and walked. At least ST I think the street may wonder why Gores thought it in their best interest to take a $50 million hit and walk away.....they were privy to things we are not. New car sales being up 30%+/- last month doesn't bode well ST for the sector. The PR from O'Dell was pretty much the same excuses he's used for years now, i.e soft economy and weak consumer spending. He said the same when AZO, ORLY and AAP were getting high single digit sales increases. I agree with another poster. They should allocate the $50 million in share buybacks. Why pay down debt. It would help prop the share price up which they should do to help get a better price down the road hopefully. Again, not well thought out from the BOD's. I remember posting a few years ago that they should have been buying their bonds back at 60-80 cents on the dollar and they were paying almost 8% face. I bought a ton at $530 a bond and finally sold last year at a little over face. Now they want to buy it back next year and pay a premium. GLTA DaninFW