It was an interesting week, where i "received" two privatisation offers - Lafe Corporation and Croesus Retail Trust.
...Not all privatisation offers are good and Lafe Corporation was one great wealth destructor
Lafe Corporation was for my dad and listed with much fanfare back in April 2000 with a market cap of $460m. The market cap today was $22m and for every $1 invested in the Company, it is worth only $0.0478 today, destroying wealth for investors in the Company ????
While my dad didn't invest from the onset, his few thousand dollars worth of investment a few years back is now worth $36 after share consolidation. Without the share buyback at $0.90, he will be out of pocket by $4 if he had to sell the shares through his broker. Maybe i should send Christopher a "Thank You" letter on behalf of my father? ????
Anyway, the morale ...
