According to the proxy, most of the discussion between Steel and MLNK involved a $100 million investment. It seems that at one point they were close to an agreement. The final deal is only $30 million. Any thoughts as to why the lower amount? What would have been different in the strategy if they had $100 mm vs $30 mm?
good question. It might be related to price paid vs. $5 in earlier offer. It might be related to bumping agaist the limit of ownership to preserve the NOL. Also MLNK may be can't deploy more cash than the 30 million. In short I don't know but these r mu guesses
Around the same time as this deal, they redid the new CEO's contract making a payment to him is there is a change in control. Maybe this bid is a 'stalking horse' bid designed to encourage someone else making a bid before this deal closes.