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Doesn't that make this a smart move then? If they rejected his offer, they'd be hit with the same lawsuits. In this case, they have a defense to say they were a
by bdcravens 5y ago
Doesn't that make this a smart move then? If they rejected his offer, they'd be hit with the same lawsuits. In this case, they have a defense to say they were acting in the best interests of the shareholders if that causes Musk to back off.
- gordon_freeman 5y agoIf one thing you need to know about Musk is that he does not back off that easily. (He already mentioned in TED interview that he has a "Plan B" if this offer is rejected.)
- bdcravens 5y agoLike when he was going to take Tesla private?
- polski-g 5y agoThe best interest of the shareholders at this point is to accept the offer. Its a 25% premium, quite typical for buyout offers.
- ceejayoz 5y agoIt's nowhere near that clear; the offered price is lower than the stock's 52 week average.
- sudden_dystopia 5y agoWhy is it in the best interest of the shareholders for Musk to back off? He is offering almost double the target price of $30 set by the largest shareholder, Goldman. Goldman thinks company is worth $30 but rejected $55. That’s the opposite of shareholder interest. This only protects them from the actual take over, it’s a desperation move.
- ceejayoz 5y agoTarget prices are short-ish term; 12 months. Goldman could hold the position that the company's current performance justifies $30, but that $55 doesn't fairly reflect the longer-term potential in the business. (It's also different sections of Goldman, with firewalls and different goals between them.)