donderdag 24 december 2015

Dear Mike


Dear Mike Kruger,

You took the liberty to comment on my previous post with this link, please allow me to briefly comment on it. 

The case has no legal merit. 

The complainant failed to identify even a single point where the proposed merger might be contravening the applicable (Belgian) law. 

Epic fail,  case closed.


Compounding to this failure, the complainant got his facts wrong.  One is entitled to his own opinion, but one is not entitled to his own facts, Mike.


What to think of these statements?
1) "In effect, the terms of this offer entail significant conflicts of interests, as it favors the majority shareholders of Picanol at the expense of the minority shareholders of Tessenderlo."

It must have escaped his attention: Mr. Tack is a minority shareholder of Tessenderlo.
He must therefore be sharing in the pain, as the proposed deal allegedly ruins him!

Moreover, if Mr. Tack gains on one side as much as he is losing on the other side, what would one have to call such a deal?  Fair, indeed. 


2) "How to explain that the shareholders of the Picanol Group, a company significantly smaller than Tessenderlo in all aspects (market cap, sales, EBITDA, EBIT) end up controlling the majority of the new entity {Tessenderlo + Picanol Industries} without paying a significant control premium ? "

More evidence that the complainant is unaware of the fact that  Picanol (Mr. Tack) has used its excess cash to acquire more than 30% of the TESB shares over the past two years.

All sellers voluntarily sold their shares to him at an agreed price.   

That's how one company ends up controlling another company. 
It's what happens on a stock market.   


By the way, while time was wasted drafting letters,  the price went down (a lot) and trading volume went up massively on the side of the deal where there is money to be made (from mispriced securities).

Hence it seems the complainant set the wrong priorities, he should have put his money to work.


One last remark, related to Ms. Witmer and Berkshire Hathaway. 

Would you have preferred that Mr. Tack got  "confidential treatment" with the local SEC, allowing PIC to publish fake stock ownership reports: disclosing that Picanol and/or Symphony Mills were dumping TESB shares on the market - while in reality they were secretly and massively accumulating them?  

Tell me Mike, would you feel better off after such a PSX deal?
 





  


 


 


 

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