What investor wants to buy a secondary now at the higher price knowing that absent Corvex continuing the fight the stock could head towards Citi's $13 target? And it isn't like they can offer shares back where they were when the price is higher, especially with all the volume that has traded. Add to this they are inviting a shareholder lawsuit and it just makes no sense the company is taking such an arrogant approach. Why not at least talk to Corvex, if only to give the appearance that you actually care about the shareholders?
What are you talking about higher price? CWH wants to raise approximately ~$450M selling ~31.3M... with those numbers that puts the secondary offering at ~$14.37... Even if you had a nice chunk for their said "additional proceeds will go towards corporate management," that's $15-16 a share MAX... I'm not seeing how that's expensive O_O???? $27.00 is #$%$ for how mixed up that company is at the moment.
I would add that if you are a major investor watching this show, why would you want to give these guys your money in a secondary offering when you can see how they are treating the other large holders, not to mention the small ones? Their unwillingness to even make a show of looking out for shareholders here would seem to be all the evidence any big institution would need to decide not to invest, especially at a much higher price than where they started. I suppose the good news is the company will almost certainly lose in any kind of proxy battle as they will have alienated all of their shareholders.
The is RMRs cash cow, and has been for a long time.
RMR has never cared about shareholder value, only about RMR fees.
They have no intention of giving up 60 -70 million per year if fees to sit of there butts and do nothing.