FOR THE BID: Rationale and speculation FOR the purchase of Mosaid.
1)..Improves cash flow, increases dividend, pays off debt with incresed cashflow.
2)...Uses combined patents when renegotiating with customers to increase payout.
3)..Greater resources to acquire new patents from which to generate new revenues.
4)...Eliminates Mosaid competition when bidding on patents for WiLAN and Gladios.
5)...Immediately prior to the genesis of the Mosaid bid, Jim Skippen had announced that WiLAN was doing it's final due diligence on 2 purchases. Could this "yet to be announced purchase" have been the Nokia patents themselves? Did WiLAN have no choice but to make a move on Mosaid.
6)...The bid to purchase Mosaid eliminates a major Wi-Lan competitor and secures a better future for Gladios.
AGAINST THE BID: Rationale and speculation AGAINST the purchase of Mosaid.
1)...Mosaid closed at $31.65 the day the hostile bid was announced.
2)...Since then the TSX Small Cap Index has fallen 14%.
3)...If Mosaid had not become a "takeover target" by WiLAN, the MSD would likely have traded down with the overall market and would be sitting at $27 now as opposed to $38.
3)... Instead MSD still sits $38+/- ( more than 40% higher than where it would be expected to be trading absent this hostile bid.
4)...Therefore, WiLAN is not paying a 20% premium to MSD's valuation prior to the bid, but a 40% premium to the probable true value of what the stock would be worth today under normal market conditions.
5)...Is WiLAN acting in the best interestsof WiLAN shareholders if they continue to try to proceed with the hostile bid for Moasaid?
6)...Should WiLAN immediately withdraw from the hostile bid, WiLAN's own stock price will be on the road to recovery, and WiLAN will then be able to take "immediate" advantage of the depressed values of other companies/patent families that will "willingly" sell valuable patents at much lower prices now than before.
