With Carlo on his back, Mandell will probably accede and drop the MDTV, since he doesn't have the money to do it anyway. MDTV will probably file a Chapter 11 and then the lenders will take over the assets.
On July 9, 2012, MDU Communications International, Inc., a Delaware corporation (“MDU”), entered into an Acquisition Agreement (“Agreement”) with Multiband Corporation, a Minnesota corporation (“Multiband”). The Agreement and the transactions contemplated by it have been approved by the boards of directors of both MDU and Multiband.
Don't need Carlo's approval, just MDU shareholders approval, Carlo made a "proposal" in his 13D.
A suggestion based on his share ownership.
Both BOARDS agreed upon the deal already. In July.
ok, makes sense, but MDU in more financially secure hands will cost more to buy the same subs in the future. Why not use the leverage of MDU poor financial situation to get the subs cheap? Its about time the whole MDU industry consolidate from little operators, empowering itself to make better deals with content suppliers, providers like DTV.
MDTV is not losing money EBITDA, that is how this industry works. AS WELL, Both Boards of Directors have already approved the deal. Do you know what ECONOMIES of SCALE means? It means you get to a certain subscriber base/employees, over head and you start making money. Has gone in the CABLE TV and Garbage Carting industry for DECADES. MDTV supplies TV and internet, the merger makes sense.