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Motley Fool Global Gains / GGS: Yongye International


Subject:  Re: Shareholder's Options given the buyout offer Date:  10/15/2012  2:45 PM
Author:  mekong22 Number:  3452 of 4235

I believe that the best way to contact the special committee is to write them at the company's corporate headquarters, and I will cc a copy to their legal counsel, Cleary Gottlieb, Steen & Hamilton LLP. I'm going to use the address from today's press release where the proposal letter was sent

Special Committee of The Board of Directors of
Yongye International, Inc.
6th Floor, Suite 608, Xue Yuan International Tower
No. 1 Zhichun Road, Haidian District
Beijing, China

Cleary Gottlieb, Steen & Hamilton LLP
Twin Towers - West (23Fl)
12 B Jianguomen Wai Da Jie
Chaoyang District
Beijing 100022

I will probably scan a signed copy and also email it to investor relations and request that they forward it to the committee members and legal counsel.

I've drafted the framework of my letter. I don't want to paste it here as I don't want them to get lots of copies of the same letter from all of us. I start by saying I've been a shareholder since 2009 and state the number of shares I own, make it clear that I believe that the offer is egregiously inadequate. I lay out some numbers to show that a $325m valuation is way too low, then I'll remind them that MS's conversion price was a minimum of $8.80 and the company has outperformed since then.

I wrap up by making it clear that if they do accept any offer that I strongly request that they require a majority of the minority vote from shareholders. I'll probably wait until tomorrow to send it out incase I want to take a fresh read in the morning. I think the urgency isn't as intense as I suggested above, but I'd say, if you are going to write to them, to do it this week. There's a good chance I'll be sending a follow up after Q3 is announced next month.

I tried not to have more than about a page and a half of text as I don't exactly own a large percentage of the company and suspect that my letter may get less attention if it's too long.
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