Ann: AnteoTech Progresses COVID-19 Test Toward Market Launch, page-824

Hey @Learner72
- takeover would be value-destroying not value-creating for shareholders.
The very very best we could hope for in a takeover bid at present is ~3x current sp (usual unsolicited bid would not be more than 1.5x).
You could hope for a bidding duel to get it to ~3-4x but that would be most unusual.It would be a massive distraction to Board as they would have to deal with it, and deal with possible multiple bidders - all at the time that they are legitimately needed to advance the whole business.
The interests of the bidder would be in driving down belief in ADO (to shareholders, partners and customers) until it got control.
And then we would have all the short-termers, traders, short sellers, and arbitragers manipulating the market and creating and manipulating news flow to suit their positions - and much more Board time would be lost responding to falsehoods put into the news and social media.
And none of this would help credibility of company as it establishes itself as a legitimate medical tests producer.
And at best we as shareholders get bought out at a price that may be a fraction of what we would get if the company is allowed to develop, produce and market its products. Heck, there are legitimate reasons (if things go well, and that is yet to be proven) to consider a 10x increase in sp within next 1-5 years.
A takeover bid would massively undersell this opportunity.
To try to kill this off and avoid effort being wasted I have drafted my suggested Board response:
The Board of ADO has received a conditional, unsolicited offer for control of the company which in the opinion of the Board (and a particularly prescient HotCopper contributor) massively undervalues the potential of the company, and the lowball offerer been advised accordingly.
Hope this is clear!