Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
What assumptions can we make about the participants?

Are they all "perfectly rational"?
Do they all know each others' thoughts?

Q1: Can the hostile bid succeed?
I don't think so
Q2: Can the poison pill succeed?
Probably -- I guess the current CEO has to vote for hostile bid as the opponent to the poison pill -- this will force the large stockholder to vote for the poison pill
Q3: What should the outside directors do to ensure some type of buyout?
Initially: MBO vs. White Knight, directors vote for MBO, it wins 4-1
then: MBO vs. Hostile, directors vote for MBO, it wins unanimously
then: MBO vs. poison, directors vote for MBO, it wins 4-1

The catch is: You can ensure a better position for yourself by voting against your opinion in the early rounds.

Kind of like "Weakest Link" -- get rid of the people who are the most threat to your winning money.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.