"Why would you think that a 6 man aero
interiors BOD is capable of building the conglomerate to desire...? "
Because they had a stunning success with aero... They have a track record of success. These people know what they are doing --- and that´s the stock talking, not me. Relational saved nothing and added nothing more than $3 to the share price. Wasn´t broke, didn´t need fixing.
"taking from the strong & giving to the poor" ... You posted numbers suggesting that the "poor" división was more profitable than the "strong" one. In any case, this looks to me like the mature division funding the growth initiative -- a common and strategically defensible approach to corporate portfolio management - though not always the road to profit maximization in the short run.
I imagine the stock will be stuck for the rest of the year and that the entities that emerge will do just fine. I´ve been in BEAV for 10 years or so and I´m not selling just yet.
You miss my point that corporations manage hi and lower growth divisions strategically as a portfolio. Apparently, you agree that BEAV was doing just fine in terms of hi-rate of investment return. If the new, growing, services business was more profitable than the base "interiors" business (data you posted) -- which was performing excellently -- I don´t get your objection to growing it (the services business). Growth companies need to grow. They need to enter adjacent and complementary businesses.
Most multi-división corporations (conglomerates) are managed with some view to the life-cycle of the individual divisions and how the various operations can be optimized for the greater good. A company with a mature operation, needs growth opportunities. The growth opportunities are funded, in part, by the profits of the mature operation, the cash cow. This is standard operating procedure and a perfectly satisfactory approach by BEAV mgmt. The market loved it, as reflected in the stock price.
Along come a couple of hedge funds to rock the boat, just as the founder is planning his legacy and his exit. Introduce uncertainty, créate a little excitement where none was needed... The whole effort is probably motivated by tax planning to benefit Khoury´s retirement.
Roundtrip. Shoulda sold at $101 b/c it´s dead money - or worse - until the dust settles. 6 months of uncertainty when they could have just announced a spin-off and been done with it.
"Koury will get to run his CMS + energy firm while Relational, Oz Mgmt and others bring in
David Anderson to get the core aero interiors business back on a growth trajectory. "
Koury built a great business and stock market winner. If the Hedge funds control the aero interiors company they will probably lever it up and run it into the ground. Smart money is often dumb, selfish management. The new business will be a growth business, the old business will be a cash cow for predators.
Agree there appears to be some bi-polarity. Also agree there will be no sale.
These aquisitions were announced previously and have nothing to do with the strategic option review which arose, I beleive, when the company found out about the hedge fund accumulation. Mgmt decided to take a step back to figure out what the hedgies were up to. For the moment, it looks like all it meant was passive accumulation by informed investors. Late to the party IMO.
As for the diversification into oil field services... I´m sure it´s been well considered and can be justified both financially and strategically. It is pure diversification, not a distraction. Do it... and keep the profitable growth on a roll.
Then I´m glad if BEAV is NOT in control so they DON´T "take their time about it, maybe do something small and stock goes back down".
...based on recent news flow and acquisitions: Management sees airline business maturing. Wants to sell that business while remaining with the new oilfield services business they have been patching together. If they did not see opportunity in oil-field services, they would not have made those acquisitions in the first place. Now they think there is a better future there than the in the base, aircraft, business. Sell that, walk away rich AND keep the new business.