In most cases, a buyout announcement for a takeover at a premium to a stock’s current share price is welcome news for investors.
However, according to a new report by ISS Proxy Advisory Services analyst Mark Goldstein, not only should Jiayuan.com International shareholders be disappointed in the terms of the proposed buyout by Baihe Network Co., Ltd., they should vote to reject it.
The Deal
Baihe has proposed to buy Jiayuan.com for $235.3 million, or $7.56 in cash per share. The offer represented a one-day premium of only 8.0 percent to market price.
Lowball Offer
Based on Jiayuan.com’s own projections and previous buyout offers that fell through, Goldstein believes…
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