It appears that the senior management, including some of the founders of the company, are in partnership with financial investors in order to take this company private.
They appear to believe that they can pay above the market price and, over a period of time, manage the business to build value to generate private equity-type returns for themselves and for their private equity backers.
This management is currently being paid by the existing owners to maximize the returns on current shareholder investment. They are obviously underperforming, knowing what they could do to increase returns, they are not doing so. That sounds like bad faith.
This management should be dismissed forthwith!
OAM
See article:
Ottakar’s, the UK book retailer, looks to be entering its final chapter as a quoted company as its co-founders and finance director on Tuesday said they had joined forces with an unnamed private equity backer in a bid to take the 136-store chain private.
The news sent Ottakar’s shares up 16 per cent to 326½p, an eight-month high. Analysts expected the offer range to be 330p-350p per share, valuing the group at about £75m.
See full Article (paid registration required).
Posts
