Just got this from SA:
Activist Elliott Management has disclosed after the bell it now owns 9.1% of American Capital (NASDAQ:ACAS), up from the 8.4% disclosed last week. The firm also states it has reached an agreement with ACAS to obtain confidential/non-public information.
How can the company agree to give Elliott confidential/non-public information. I'd be also interested when and at what prices Elliott got the increased shares.
From the PR:
"The Company expects to enter into a Rule10b5-1 trading plan to undertake accretive share repurchases on a non-discretionary basis up to the $1 billion limit."
What does "non-discretionary basis" mean?
Your not going to erase the deficit to NAV without reinstating a dividend. I don't see where the specific reentry of the dividend would take place.
"They will have to pay a 65 cent dividend in 42 days"
What are you basing that on? Do they have undistributed earnings?
Their Fees are based on Asset Valuation I believe.
They know the retail buying would dry up on the uncertainty of a dividend drop.
With Lefkowsky retaining Chairmanship and controlling interest (I believe), why would think there is any inkling of an imminent buyout. He wouldn't sell when there was $6 Billion on the table. So you think he's going to unload with half that or maybe less? Amazon didn't get out because they couldn't compete with Groupon. They got out because they got tired of continual losses on the Local Deals business.
Your AFFO comes in 1/3rd less than the dividend rate. So who wants this stock looking at the probability of a dividend haircut that could very well be to .40 a quarter? Why buy at $12 now when this would drop to $8-$10 on the dividend?
If the Board doesn't put it up for sale there no one will bid for the company at this point. Lefkowsky won't vote sell. He's rather let Groupon just rot along with shareholders.