Re: Projections
in response to
by
posted on
Jul 23, 2019 06:20AM
Sorry Jack IMO you’re not making sense. POET (and buyer) are doing exactly the right thing here. They both should keep tight lipped. There is nothing underhand about this.
Lets say they revealed themselves right from the start. A buzz is caused and the SP rises. Then it falls through. Can you imagine what people would be saying then. I can hear the bleating already. “This management are incompetent”, “why didn’t they just keep quiet until the deal was done” blah blah blah!!
It is not at all uncommon in these sorts of deals for complete silence. I’d struggle to find a company that reveals the deals it’s doing before all is signed off. Particularly if it’s of significance.
It’s a very high risk strategy to say the name, so as to start a bidding war. Management will create shareholder value by getting the deal done, with good terms etc. Not by trying to profiteer from the name of the buyer and thus potentially scuppering any deal.