This buyout was very good for us shareholders. I made 60% on CNS (thanks Motley Fool!) and I'm sure others did even better. But as is often the case, the acquisition wasn't so hot for employees. Here's an excerpt from yesterday's news coverage of the closing: "GSK spokesman Brian Jones said Tuesday that the company intends to move CNS' operations out of Minnesota. CNS' commercial operations will be shifted to an existing GSK facility in Pittsburgh, and research and development operations will be shifted to Parsippany, N.J., Jones said.GSK offered positions to 10 of CNS' 60 employees, Jones said. The remaining 50 were laid off."That sucks! This is what happens to a good company: it gets devoured and broken up, and its employees get canned. Sorry to be a downer, but I thought the outcome for CNS' people was worth noting.EG
As a business transaction I think 10 out of 60 employees is generous considering what they bought. CNS's only useful product is the Breathe-right. They built the brand and that is what GSK bought. The dietary supplements and other garbage will certainly not continue. For GSK to overpay shareholders and then bankroll 10 people for nose bandaids is very, very generous.
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