Management do not exist to worry about the share price day to day week to week. They are there for long term shareholder value.
If they managed the company with such a short term view......god help us.
No idea if this is accurate or not but imagine this scenario.......
A deal is nearly a fabulous done deal...a few material issues are still being negotiated.
MEO management advise the other party that they have a deadline for getting a deal done because MEO shareholders are very impatient and have to have a deal done by Feb 15.
How do you think the other party react (who already seemingly have all the time in the world, and substantial leverage given their relative size) ?
Well....in case it is not obvious...they refuse to budge on every outstanding negotiating issue knowing full well that MEO management have a ticking time bomb because of shareholder "time pressure".
Of course MEO management then concede on every issue and the deal is millions of dollars less valuable to MEO shareholders but hey.....they got it done fast!
Negotiation 101 folks.
MEO Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
