USG Stock Report
Read the full article at: http://collegeanalysts.com/?p=192
Submitted by JellyRollCapital on Mon, 2008-01-07 15:42.
(via collegeanalysts.com)
This is a stock report (13 pages, PDF format) I recently wrote on USG.
USG
Hi James,
While I agree that Knauf's buying is intriguing, USG's new stockholders rights plan ('if any group acquires beneficial ownership of 15% or more, other shareholders will have the right to purchase additional shares at half the market price, therby diluting the triggering stockholder') would make it difficult for them to take over USG.
Regards.
Guy
USG Rights Plan
Guy,
I'm aware of the 15% trigger, but my understanding of the situation is that any buyout will have to be directly negotiated with USG's Board of Directors, who can choose to accept or reject the offer. If the acquiring company pursues a hostile takeover following a rejection, then the you have the Rights Plan taking effect.
Considering that Knauf has a joint venture with USG and is a long-term shareholder, I'm sure they are aware of this.
-James