I agree that would be the case for a third PE bid, but not for an industry-operator bid.
A third PE bidder would be looking at the same value proposition as the current bidder, so they would only throw their hat into the ring if they felt that they had a liquidation opportunity that the existing bidders wouldn't have. You might still see a third bidder come in opportunistically on the back of the other two. If you got two new offers of $3.75 and $3.80 (for example) a third might throw on a bid of $3.90.
An industry-operator though would be looking at an entirely different value proposition, which would have a longer horizon and therefore could offer more.
If the board were faced with two bids from PE firms and an industry-operator as a possible third bidder wanting to do their own due diligence, I suspect the board would tell the PE bidders that they had to wait until the third bid was in. If the PE bidders don't like it then the board is in a position to let them walk; there is absolutely no pressure on the board to sell.
VOC Price at posting:
$3.48 Sentiment: Sell Disclosure: Not Held
