Current Price – $1.37
Buyout offer – $2.66
Upside – 94%
Expiration Date – TBD (currently unsolicited offer only)
This idea was offered by Vladimir.
Last week Evine Live received an unsolicited offer from Segel Vision at 105% premium to market price. Shares are up 25% since the announcement and huge (94%) spread remains. Clearly the market does not believe transaction will go through or that the offer is solid.
Offer was acknowledged on Q3 conference call, but only one analyst asked about it and company has not made any other comments otherwise:
And then last one from me, obviously there’s been a little bit of buzz in the press here with this overture by the Siegel Group [ph], is there a kind of a canned answer that you guys are giving, what’s the perspective from the company in terms of some of the things that have been put out in the media?
Yeah, we have seen those articles as well. And certainly we have a robust independent board that evaluate all communications from investors like this. And so I can tell you that — this process of that communication has been no different and our team evaluates that, our board and our finance committee. And certainly from Bob and our perspective we are flattered by the interest that everybody recognizes that we are undervalued. When you look out at the opportunity for us from stakeholders perspective we’re just starting our growth phase and so I think it’s just a flattering notion that people recognize we are undervalued, we appreciate it.”