I also got the letter. What do you suppose is up? I'm not so sure it is good. There is room for some major unpleasantness. Has anyone tried to contact the company, or Mr. Schwarz, and ask for information?
Can you identify any recent transactions in the industry? What are the economies of scale that could generate such a large premium?
Incorrect. B shares are quoted and do trade. All time high was $90 on 10/17/13. The company bot his stock for $93/sh. Malone got a sweatheart deal unavailable to any other investor. Board should be sued. Ridiculous. And Malone doesn't need $33m for Time Warner cable.
So let's get this straight: Malone just sold 39% of his position in the company, consisting of 1/2 of his supervoting Class B stock? And he sold it to the company? And the company paid an above market price? What part of this is deal is not complete BS?
Sounds like Malone just called the top. Ugly from here?
The valuation is past absurd. Please note that insiders seemed unable to sell their shares fast enough one year ago when the stock was less than half its current price. 11x sales and 60 p/e?
Sure seems like they are out there trying to buy market share. I wonder where this ends.
Also, anyone have a view if 12% churn rate is high or low?
I have to believe that the Aurizon deal is dead, and HL just got a free out via MAC clause. The shareholder meeting is scheduled for May 9. It likely will be postponed next week as the lawyers try to figure out how to kill or restructure. IMO, there is no way the the BoD of HL could continue to recommend the transaction under its announced terms. My guess is that the two sides simply walk away. Risk arbs who were long AZK will have just had one of their worst days EVER. The 5.875% Notes issued last month by HL will be redeemed with escrowed proceeds. Finally: by mid-May, we are back to stand alone HL with $23 silver and $1400 gold.
It was a good quarter. But I think they are challenged to sustain consistency of results. Looks like there was a sizable order delivery in Q3, new orders could not keep up, and book to bill fell to 0.86. It could happen, but I would not expect a repeat of this qtr right away.
Agree with all of your comments, ninaq88. I think the anti-trust risk here is non-trivial. End result could be that the deal breaks, Nielsen buys PPM from ARB and licenses back the technology to them. I think the deal price for ARB was full, and that NLSN now is overvalued. The private equity holders must be frustrated with holding NLSN shares this long, while simultaneously reducing their board presence. Their shares, nearly 50% of the total outstanding must be very antsy at this point. I have been waiting for the big secondary, but it never comes.
Seperately, do you know anything about the lawsuit in India?