scarborough payment to equity swap deal, page-22

the 19.9% is significant in the sense that it becomes a potential blocking stake for any other suitor...significantly lowers the value of VPG.

Having said that, difficult to see how the value could be any lower than it is already. I mean, 10 cents in the dollar. What is there...no tenants left in the world? Jesus making millions of hectares of new land in central business districts that we peasant shareholders can't see?

At some stage whether it be by way of an orderly management buy out or a hostile takeover bid or heaven forbid with the passage of time and steady as she goes trading, VPG will return to its fair value...not necessarily the value a director or senior manager might be capable of paying, but a new phenomina (???spelling..a close guess...sorry) called "fair value"

2 key points:
(a) it would be very foolish of managers/directors to orchestrate affairs to suit themselves...there are courts and law firms like Slater and Gordon chaffing at the bit to take on mischeivous boards. Moroever, it is unlikley that financiers would view 'improper' behaviour very highly ... would you lend money to a misheivous person?

(b) I suspect some major shareholders might have a view about selling out. If I were Orbis, looking to enjoy the path of value restitution without having to go and find other equally valuable opportunities, would I simply take the first miserable offer that came along? I doubt it! I'd probably look for other suitors...give them an opportunity to run the rule over the company or part thereof. Hell, at a gift price, Orbis might take it on!

There is a fixation that a takeover is inevitable. My take is they floated the Scarborough proposal to glean reaction... I suspect they now have a sense as to how any vote might unfold. It will not go ahead at anything less than 'fair value'

For me, happy to enjoy the steady as she goes...put the bankers back in the box in the corner under the telephone books and other useless rubbish so that we know where they are when we need them and set about doing what VPG does well...turnover investments profitably.

My thoughts

Hope we all had great days. BJT treated me kindly. REIT's reporting (Reuters) ex USA not hopelessly bleeding...maybe there is hope...