OSH is minus a CEO and will shortly be minus a Chairman, the rest of the board needs to sit down with Santos and negotiate a deal. Both companies believe the merger makes sense, so what is missing is price. BOD are custodians of shareholders monies and ultimately shareholders should have the right to make the decision. How could the BOD receive an offer, and the offer could be highly conditional and NOT disclose this to shareholders beggars belief. Worse negotiate for 6 months and write back to the bidder saying that the bid was too low and no one thought that this might be a problem. To make matters worse it looks like the BOD appointed a CEO that already had complaints about his management style, and appear to be negotiating exclusively with STO. Go figure. How do the BOD keep their jobs? Not to mention their legal counsel? OSH has a great asset base and potential growth but lacks the balance sheet, STO can provide that. Hopefully sanity prevails and a deal can be done, I think major shareholders will not direct how the deal proceeds, the BOD have shown themselves to be grossly incompetent. An independent valuation of OSH and STO needs to be produced and negotiation can continue from there. The merged company will get a rerating, there is bound to be significant synergy and above all it makes sense.
OSH Price at posting:
$3.90 Sentiment: Hold Disclosure: Held
