Hi BrianI agree with your points but if I were QVT I would be...

Hi Brian

I agree with your points but if I were QVT I would be questioning why we would want to take control of a company that has thus far failed to get significant traction under a variety of management regimes? I don’t think it’s as simple as: loss making business + more capital + management change = profit. There is a big risk factor in there as well and before embarking on such a strategy they would want to see a proof of concept (which I still don’t think we have seen yet in any of the various product incarnations).

To take control means that they are up for all working capital plus they inherit all the redundancy, make good provisions, shutdown costs etc in the event that the company fails. It doesn’t make a lot of sense to me at this stage. If they think that the company is being badly managed or has the wrong strategy, surely they would have forced a change by now?