Minority shareholders complain about unfair Offer Price, ruining market ecology. Privatization failure may lead to greater losses. Arbitrageurs may bet on second privatization and potential dividends
What is covered in the Full Insight:
Introduction
Privatization Concerns
Potential Investor Dilemmas
Risk and Reward Analysis
Conclusion
Boomeranged on Mon, 5 Aug 2024 09:04
There're rumors an investor with about 20m shares plans to vote against the privatization and then bet on a second one because he is dissatisfied with the Offer. But some minority shareholders are willing to back the deal as they can't afford a collapse in shares if it fails given the bleak outlook for cement industry.If there's really major shareholder's opposition, probability of failure is high
SUMMARY
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