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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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What? You Don't Trust The Company?





This is very much ethical behavior on the board's part in my eyes.

From New York Times:

Why were shareholders willing to approve such a low-ball offer? A big reason could be that Pathmark's board urged shareholders to approve the Yucaipa deal. Stockholders, even now, are inclined to trust their directors.

But another factor may have come into play. Some investors may not have learned about the higher offer until after they had mailed in their proxies. That's because Pathmark, which received the $8.75 offer on June 1, did not disclose it to shareholders until June 7, in a regulatory filing. That was two days before the vote.

Pathmark's shareholders were not being asked to choose among various offers that had come in after Yucaipa made its offer; they were simply asked to vote up or down on the $7-a-share deal.

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