Quote Originally Posted by RupertBear View Post
Hmm to hold or take the money and run
age old question

depends on how opportunistic the prospective acquirer is (presumably a private equity firm but could be some form of trade). With this company's SP so beaten up its easy to see how someone could lob in a standard 30% takeover premium and hope to get away with it, but that wouldn't succeed with average TP 57% above last close and any independent valuation unlikely to be below that.

then there is the baggage in the company. We don't have good visibility on the customer numbers and how they are tracking and presumably the prospective buyer(s) dont either - so they could walk away after getting a look under the hood. That said they will have been undertaking desktop due diligence and have already engaged industry experts so they will be well informed. One large private equity is known to have already done a lot of work on PPH and came close to submitting a takeover offer years ago before the SP ran up.

If the premium bid is solid I'd say it has a good chance as many shareholders will probably be relieved to get out with all the trials and tribulations the company has been through. The company release read relatively benignly and factually - sometimes initial takeover press releases have a lot of defensive language which indicates the board has it doubts. The board still might they just haven't shown any cards yet.