From the Vocus announcement released 5th July 2017;
'Commenting on the Indicative Proposal, Vocus’ Chairman David Spence said, “The Vocus Board believes that the management of Vocus has established a strong strategic plan which will deliver value for shareholders both in the short and medium term'.
In my view this would suggest that management planned to retain company profits and/or sell non-core company assets in order to deliver shareholder value in the short & medium terms.
Quoting from your post; 'It was written Private Equity pulled out as they didn't like the future board direction which to me infers significant operational emphasis changes, possibly like the above'.
If management flagged such initiatives going forward then I would think that those initiatives would be in line with the objectives of the PE companies. So why would they pull out of a deal based on that premise?
Even though PE walked away from the deal, since they were willing to make a preliminary, indicative and non-binding proposal of $3.50 cash per share without access to Vocus' books, wouldn't it be reasonable to assume the implied value of the company is still approx. $3.50/share? Surely this was not an arbitrary number... in which case what was their initial offers based on?
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From the Vocus announcement released 5th July 2017; 'Commenting...
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