Feb. 28 at 10:07 AM
$BARK Case study of
$KORE and its acquisition:
TIMING: KORE received a buy-out offer by a third party in November 4th and yesterday in February 27th announced a definitive agreement.
-Almost 4 months were required.
FINAL PRICE: The suitor initial offer was a non binding proposal in cash for
$5 per share.
-The final price of the deal was
$9.25 per share.
PROCEDURE: There was no any warning, PR etc which indicated the substantial increase of the offered price. Simply, there wasn't any PR by the suitor that they increased their offer.
Only the definitive agreement with a 85% increase from the initial
$5.
SPECULATION: It is proven that the suitors were buying shares around
$5 from the free float the last two months.
Therefore, many of the retail investors sold around the initial offered price of
$5, while the insiders held and now they will receive
$9.25.
This was another way for the insiders to gain much more than the retails, while the buyers made a lower acquisition average.
