Activist investor Starboard Value has told Compuware it should look for a buyer right now or come up with a new restructuring plan for the firm. Compuware has been ripe for a takeover since it rejected a $2.3bn offer from its largest shareholder Elliott Management in January, but things have been quiet since it said no to …
5% share ? I fart in your general direction.
It's obvious that Starboard wants to just get out of the stock and not take too big a loss. They don't believe there is value "locked up". They just want to find somebody who is fool enough to buy it before it hits the ground and one is left selling to the scrap yard. As for the top brass at Compuware ... hey they just want to hold on to their jobs as long as they can.
You don't need a weatherman to know which way the wind blows, just take a sniff.
I agree with gnufrontier...
The company emitted shares so that its success would be shared with the shareholders as cash....except shareholders of this category don't give a damn about success and are just playing stock-poker. Please fire half the workforce, and accept the first purchase offer that comes so I can bail and leave you all to rot now I have gutted the company for you for my own short term gain... Yet it would seem it works as 1% of the population holds almost 40% of the wealth, at least in the US...
I despise the phrase 'unlock value'. It's almost always spoken by someone who should 'unlock ethics'.
Company value isn't locked away, waiting for someone to find the key. Value is more like a recipie and you've got to have all the right ingredients added in the correct proportions at the right time, otherwise you end up with shitty muffins.
Although I don't agree with the shareholders, a 5% single stakeholder is a force to be reckoned with. Such are the tradeoffs of taking your company public. You've sold your right to manage the company as you see fit and you've sold it to people who care not a whit for anything other than their financial gains.