My understanding is that Shell previously ( prior to the non binding conditional offer $4.45 on 8/03/10 ) had 10% of Arrow International and had a "back in" option of 50% if they chose to exercise it.
The initial non binding conditional offer was just that , $4.45 for each AOE share .
When the second deal came a long which is the takeover offer as opposed to the previous non binding conditional offer , the "back in" option had been removed and the cash had been raised to $4.70. So that is the improvement that management had negotiated between 8/3 and 22/3.
If you go back to the 2008 announcement of the Shell/AOE deal , particularly the ann on the 12/9/2008 , it explains the 10% stake and the 50% back in arrangement.
So no funny business in that we didn't know about Shell's partial ownership of Arrow International . As far as management's enthusiasm to accept the offer , well I guess that's something only time will reveal.
AOE Price at posting:
$5.17 Sentiment: Hold Disclosure: Held
