[AusNOG] Soul/TPG buying Pipe ...

[Skeeve Stevens]

Brent,

Am I missing something?  Was Pipe in trouble and had to sell? Was there a downward forecast or something?

I will state upfront that I know little about publically listed companies... but with the offer, did they have no choice but to consider and accept it?

I suppose that by being on the market in the first place, a company could be considered to already have been 'sold' - just with no majority holder.  But then again, I don't know what percentage the other board members held/major shareholders - apart from Bevan and Steve's 27% - but if it was more than 50%, as far as I guess, they didn't have to do anything.

I was under the impression that the market was coming back quite well and business was on the rise....   but I am sure there could be myriad of reasons that they have decided to go in this direction.

...Skeeve

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Skeeve Stevens, CEO/Technical Director
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From: Brent Paddon [mailto:brent at overthewire.com.au]
Sent: Wednesday, 11 November 2009 6:33 PM
To: Skeeve Stevens
Cc: ausnog at ausnog.net
Subject: Re: [AusNOG] Soul/TPG buying Pipe ...



One question I would really like to ask is 'Why Bevan why?'... I realise you guys together only had 27% - but did you have no choice?  I am sure I am not the only one asking 'How could you do this to us?' Is it just about the money?


Skeeve,

Just bear in mind here that as a board of a company that is listed on a public exchange, the directors have to act in the interests of all shareholders.   In the absence of another suitor, their only other choice was to dismiss the bid as being undervalued - probably a bit dangerous given that most brokers had them valued at around the bid price (roughly).

The shareholders would have eaten them for lunch had they chosen to dismiss the Soul bid and things had gone south [remember MS and Yahoo :) ]...

Brent


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Brent Paddon

Director | Over the Wire Pty Ltd brent.paddon at overthewire.com.au<mailto:brent.paddon at overthewire.com.au> | www.overthewire.com.au<http://www.overthewire.com.au>
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