Many SH will spend the weekend wondering how Monday will turn out, will STX make a fair and reasonable offer? Let's hope so. But what if they don't? Do not despair, a bad resolution can be defeated because EVERY shareholder is important, not just the T20. How does it work?
Firstly, to defeat a SOA, just 25% of votes against will defeat the resolution. If the first offer as presented had made it to a meeting, well in excess of 25% of the company would have voted against it. The dissident shareholders claim to have 30%. That means of the remaining 70%, well over half would have been needed to get approval. Based on my read of the room, no chance.
Secondly, if 50.01% of total shareholders vote against it, the SOA will fail. Per the last Annual Report, TPD has 4,150 shareholders. If 2,100 shareholders vote against it, it fails. How many shares you own does NOT matter, EVERY shareholder's vote is important. The dissident group may have $$$ on their side, but we have % on ours. Again, we would have defeated the first offer as presented.
TPD's future is just as much in your hands as anybody elses, despite what other people tell you.
So, don't worry too much over the weekend. Let it unfold on Monday and let's see what STX offer, and we can take it from there.
TPD Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
