One did get the sense that the new owners were in a rush to acquire 2GO and any suspicion that they paid a premium for control
a few months ago had been confirmed now that the company was worth slightly less than what its previous owners said it was.
To sum up the price premium for control
or the price discount associated with a lack of control (minority discount)--depends on the equity holder's ability to exercise any or all of a variety of rights typically associated with control.
The appraisal should be updated in order to incorporate a premium for control
(if a 50% stake is sold) and recent industry trends, according to the company.
In Section 2, we discussed the presence of a premium for control
as well as the existence of MBR rules that protect minority shareholders in the target bank.
Investec analyst Steve Liechti said the injection of pounds 1.5 billion would probably secure the consortium a 30 per cent stake in the business and asked: "Is this a cunning plan to do a venture capital, private equity type deal without a premium for control
Because a bidder is likely to pay a premium for control
, SCi chief executive Jane Cavanagh is in line for a substantial windfall from a takeover deal.
The lawyers may talk about a premium for control
. But to a true believer of efficient markets, there cannot be a premium for control
Finally, the court noted that the premium for control
would be "substantially greater"
If the interest being valued is greater than 50% of the business, a premium for control
is usually added to the freely traded value.
'480p is not a serious offer: it takes no account of the sector rerating, the inherent value of W&DB, our strong recent and current trading performance, or our future potential, and it certainly does not offer shareholders an adequate premium for control
Mr Allwood repeated his view that neither bid represented a sufficient premium for control
Mr Hughes is keen to point out that there are more ways to grow the group than making a major takeover which generally means paying a big premium for control