You all seem to be forgetting, that the market value for a share of AVB was about $0.07. That's how much money the majority of market participants thought it was worth. It doesn't matter if it was $0.25 8 years ago. It doesn't matter if it has the potential to be $0.25 in a couple of years time. Its worth in the market right now, was $0.07.
So yes, somebody comes and says to the board "I'll pay your shareholders $0.16 per share but only with your recommendation" It would be a negligent board that refused such an offer.
Consider my house I bought as a fixer upper. Before the GFC it might have been worth $500K. But the market has changed and now people are only prepared to pay $150K in my suburb. Sure with a lot of renovation I might be able to get $500K for it with a lot of work in 3 years time, it has that potential. If someone offered you $300K for it right now, what would you do?
Personally, I'd take the money, as it is well over the current market rate, and then re-invest it in similar opportunities. You may not, but the economically rational thing to do, as the AVB directors have done, is to take the offer!
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