Mar. 18 at 12:00 PM
$PRTH in the 80% of the cases when a CEO/President/insider with high percentage is making a buy-out proposal, two things are certain:
First, the Special Committee has to prove that it serves the best interests of the shareholders, by:
-Delaying the decision, to show that every other suitor had the time to form a proposal.
-Delaying the decision to show that they really negotiated with the insider.
Second, the Special Committee & the CEO agree to a revised deal price, higher than the initial by more than 5%, to prove again that the Special Committee has negotiated and achieved a better deal for all shareholders.
Both actions of the Special Committee are required to protect it from lawsuits etc.
Especially in this case, where the PRTH CEO controls the majority of the votes and institutional holders have expressed their opposition to a the
$6.15, the aforementioned actions are 100% necessary.
Therefore, in my opinion, the final deal price will be above
$6.50 & the decision may delay a bit.
