linkedin post 2013-06-15 05:34:21

HOSTILE BIDS for public companies, like the Royalty Pharma bid for Élan, get ugly quickly, and resemble activist shareholder tactics by voting against management initiatives, and then trying to replace the board to wrest control away from the owner. In the end, if successful, most dismember the acquired company and sell off the parts. These scrapyard dog tactics are rather uniquely American and are powered by the same type of bottom fishing class action lawyers who plague public companies. This is the huge downside of the IPO path to VC liquidity and why Dell buys back stock for billions.

http://lnkd.in/Mc6cNg

View in LinkedIn