RE: Too Sell Or not to Sell24 Apr 2017 18:28
Delek have stated they intend to force a squeeze out if they get to 90% - which in any case makes sense from their POV. They own 76% now. Seems one of the following will happen.
1. The extended offer period gets them up to 90% and they force a squeeze out.
2. They get up to between 76%-89.9% during the extended offer period. They then delist the shares - no improved offer price to get to 90% or anything. Anyone know of any precedents for this? Seems to be worst case scenario for PIs. Also not sure Delek/Ithaca can simply do this at their choosing?
3 They get up to between 76% - 89.9% during the extended offer period. They then improve the share price a wee bit to get up to 90% to force the squeeze out. As per takeover rules, all the previously tendered shares would get this new, slightly higher price.
Seems options 1 and 3 most likely to happen - which suggests still no point tendering right now. Option 2 would sound very messy and controversial for them, and might not be worth the hassle for a slightly improved offer to get to 90% to cleanly squeeze out.