I noticed in the minutes released today that the judge acknowledged the presence of the mediator and "encouraged" the parties to pursue mediation. Do you think that, notwithstanding the failure of the parties to successfully mediate this litigation prior to the post trial hearing, the judge will delay his final judgement in the hope of a successful post hearing mediation?
This case is screaming to be settled- the Judge does not want to spend all the time necessary to rule on the pending motions and then have to write lenghty opinions. He then might still get the case back if an appeal is sustained. I am sure he is "strongly encouraging" a global settlement.
BDX has a real incentive to settle this case because of the scarlet letter inherent in being found to have violated the anti-trust laws. Also, if found liable for al the other claims they would be facing a $500m judgment.
BDX buying the company for $150m+ ($5/share minimum) is "chump change" to them. They really have to buy the company to put an end to Shaw's endless (and costly) lawsuits. They can easily justify the purchase because they would be buying intellectual property, real property, a certified mfg. plant, inventory and cash in the bank. The only debt is the mortgage on the property.
Hi tesiman. My only additional opinion is that price will be 8$ pps at least. If you calculate half of 400 millions $ plus all current available assets (cash, receivables, etc.) and all you wrote in your post you will get much higher amount than if you calculate the value of the company at 8$ pps. I expect even higher price than 8$, but we will see. Also, I would like to buy more shares, but I already bought for 50% of my portfolio (it means extremely high) and cannot risk anymore (risk is always present). So, as you said once, cross the fingers and wait.
All the best to all longs who will soon close their positions and enjoy the results of investment.
Sentiment: Strong Buy
I agree with you as far as selling the company as a settlement but unfortunately I think that Shaw has had too many opportunities to settle and plenty of time given that four months lapsed between the jury verdict and yesterday's hearing. Unless something dramatically negative occurred during the hearing I think he'll have no problem using company funds to fight an appeal regardless of the nature of the judgement.
It is just what I would expect to hear from a judge who is caught in the middle. Both sides have reason for concern and this evens the playing field and serves the Judge's agenda of trying to finally get this case off his docket. I am sure he is sick of all of the litigants and their expensive attorneys.
Based on my research I have no recollection of the Judge ever granting a JNOV motion. Under normal circumstances it would he an extremely usual action for any Judge to circumvent the jury's determination. Although it is always a possibility, I put the odds at less then 10-1 of such an action.
i am sure Shaw has been advised by his counsel that the time is right for settlement. He has to be reminded that he can walk away the victor and hold his head high (and his pockets stuffed with cash) that he beat Goliath. Otherwise, he faces the prospect that Goliath is only stunned and is capable of sending a SAM missile up his butt.
Interesting dynamics. If I were representing RVP, I would go everything possible for settle the case right now.