Here is a management that have just told their shareholders that they should accept a buyout offer which, when completed, will result in the buyers (management and a financial partner) managing the same business in such a way as to generate values well above the equity invested in buying this company. That is what financial buyers do and what they expect.
Why is it that that same management, only see a way of significantly increasing value when they are the owners? Why is this not a demonstration that management is not giving their best to their employers (shareholders)? Why is this not cause for dismissal?
The Board have recommended the offer as well. They should be fired as well!
OAM
See article:
Ottakar's management team stepped up its fight to take the book retailer private yesterday by making a formal £78.6m offer and poaching a key director from rival Waterstones.
The book retailer's managing director James Heneage, along with chairman Philip Dunne and finance director Michael Hitchcock, have made a recommended 350p-a-share cash offer, valuing the company at £78.6m. The trio are backed by venture capitalist Phoenix Equity Partners.
See full Article.
Related articles:
Ottakar's agrees 78.6 mln stg management buyout
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