Q on shares

I was given couple of thousand shares a few years ago. In all they are not worth a fortune so the money is not an issue.

I know nothing about shares as they don't interest me a great deal. Seems there is a takeover and reading the booklet sent out it stated if I don't accept the offer I risk being a minority share holder and you take all the risks as a minority share holder.

I also received a cold call from the Co doing the take over a couple of days ago and basically wanting me to accept the offer. I thought this a bit odd.

The current directors have indicated to accept the offer. Of course if the Co doing the takeover gets 90% they will do a compulsory buy out anyway and they are currently 54%. I feel like just leaving them as is and see what happens down the track.

Over to the more learned on the forum for my Stupid Q - What is a minority share holder .... I assume one with out any voting rights or if it collaspes I would get zip.

Brian
 
as with any share, if the stock goes to nil you lose your money - majority shareholder or not. i don't see how a minority shareholder can shoulder more "risk" outside of regular market conditions.

you would alsready be a minority shareholder in a significant majority of circumstances - unless the few thousand you hold make up 50.1%+ of the total shares on offer?

you would do well to seek independant advice, you are right - the cold calling is rare and it seems like a scare tactic as part of a desperate ploy.

you may find out your shares are worth more than you are being told. if you have voting rights you may find the cold calling is because you have voting SWING.......
 
I was given couple of thousand shares a few years ago. In all they are not worth a fortune so the money is not an issue.

I know nothing about shares as they don't interest me a great deal. Seems there is a takeover and reading the booklet sent out it stated if I don't accept the offer I risk being a minority share holder and you take all the risks as a minority share holder.

I also received a cold call from the Co doing the take over a couple of days ago and basically wanting me to accept the offer. I thought this a bit odd.

The current directors have indicated to accept the offer. Of course if the Co doing the takeover gets 90% they will do a compulsory buy out anyway and they are currently 54%. I feel like just leaving them as is and see what happens down the track.

Over to the more learned on the forum for my Stupid Q - What is a minority share holder .... I assume one with out any voting rights or if it collaspes I would get zip.

Brian

NBS

We received an offer of $7.20 for LDW earlier this year after a bidding war we received $11.00. I was taught never take the first offer. But we knew the company well.

I do not see what this minority share holder BS is all about, sales pitch by the sounds of it.

all the best
 
I suspect you're talking about Acer being bought by Drillsearch.

They've upped the bid to 28.5 cents and have around 65% now so there's very little chance they'll pay higher. They already control the board with greater than 50% and I think within a month they'll be close to the 90% and acquire the shares anyway.

I would accept and get your money in 5 days.
 
Yeah thats the one. I have been keeping an eye on where they are in % its just the way they put minority share holder it seemed like a "threat".

Thats what I thought Terry, so was just a bit confused when they said you risk being a minority share holder.

I also did not like being cold called. I was less impressed when I called my mum to find she was quite upset after being cold called and she felt pressured.

Thanks all for your responses.

Now to decide to keep or sell.

Brian
 
Yeah thats the one. I have been keeping an eye on where they are in % its just the way they put minority share holder it seemed like a "threat".

Thats what I thought Terry, so was just a bit confused when they said you risk being a minority share holder.
Brian

One possible downside of being a minority shareholder is that the liquidity of the shares can, in certain circumstances, dry up.
 
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