> The case here seems a bit quixotic- I can't see a court ruling that Yahoo was failing to enhance shareholder value by turning down a somewhat low ball acquisition.
It's hardly a low-ball deal.
Yahoo has investment cash-equivalent assets which come out to about $12 per share which means that at $19, the real *value* of the company is only around $7 per share.
An offer of $31 when you back out Yahoo's cash equivalents is $19 for a stock that is trading at $7 - that's almost a 3X premium and is actually a quite generous offer. In situations like this, you need to back out any cash or cash-equivalents the company holds because no one pays $1.50 for $1.00 in on hand cash.
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> The case here seems a bit quixotic- I can't see a court ruling that Yahoo was failing to enhance shareholder value by turning down a somewhat low ball acquisition.
It's hardly a low-ball deal.
Yahoo has investment cash-equivalent assets which come out to about $12 per share which means that at $19, the real *value* of the company is only around $7 per share.
An offer of $31 when you back out Yahoo's cash equivalents is $19 for a stock that is trading at $7 - that's almost a 3X premium and is actually a quite generous offer. In situations like this, you need to back out any cash or cash-equivalents the company holds because no one pays $1.50 for $1.00 in on hand cash.