Ann: Strategic Applications Increase Makuutu RE Project Scale, page-64

I haven't ready any HC threads for a while due to lack of interest but here is food for thought on your responses.
Basically, a consolidation is an admittance that the strategies and movement by said company have previously been ineffective (#1). It is a sign that management has NOT done an effective job and has failed to move the company forward at an economical pace. Mostly done by companies with lame directors who make many mistakes over an extended period. Directors who just sit back and milk highly paid company wages for little growth. Like AVZ for example. I know of Makcorp who is an investor that specializes in locating poorly run companies and looks at what companies spend in exploration/drilling, providing growth value for investors and then comparing that to what the company wages and administration charges come to. Sorts the wheat from the chaff.
Talking of an IXR consolidation is being made by clueless investors.
A consolidation can be advantageous if the SP is heading up. If the SP stalls or done at the incorrect time this can intensify losses to the investor. Galaxy Resources as a shining example. You also need to get all the major shareholders aligned. If you fail then that is another signal that not all is well within the company and hence back to point #1.
Many companies in the last 2 years have done cash buybacks of their shares and have copped a lot of criticism by many pundits as there are inherent risks involved.