![]() The company also notes this in its offer letter:Īt the outset of our exploratory discussions with the Special Committee and its advisors regarding a potential transaction, we stated that we would only be willing to consider a transaction that is expressly conditioned on the procedures described in Kahn v. The 75% premium is quite substantial to the closing price even to the previous 52-week high of just under $20 back in June, this is over 25% from that high point. ![]() This fact pattern confirms that this is a last and best offer.ĬBR is also going to pains to ensure that minority shareholders are treated fairly. In the same letter, they also refer to the $24.65 offer as being a 75% premium to CNR's closing price on February 4, 2022, before the speculation about an offer began to gather steam, as documented by Bloomberg. In CBR's letter of offer, they also explicitly state that they don't want to take part in any alternative transactions I read this as being unwilling to listen to higher offers for its current stake. This article looks at the information we know now to try to assess the risk of a deal break.įirst, CBR is a majority owner of CNR which understandably makes it very unlikely for a competing bid to come in. If you have been long shares, this is already a nice return but the question is whether it is worth continuing to hold shares to close this spread. This bid spread of $2.21 represents a 9.8% upside on the current share price. The bid has been characterized as a "best and final" offer by CBR. Shares naturally rose from its Friday close of $18.40 to close at $22.44, up almost 22%. ( NYSE: CNR) received a firm proposal on February 13, 2022, to take the company private by its 51% majority owner Clayton, Dubilier & Rice (CBR) at $24.65 per share. In other words, it's as if you are paying Cornerstone Brands to work for them.Cornerstone Building Brands, Inc. It actually costs a Cornerstone Brands work-at-home employee more to work for Cornerstone Brands. ![]() And, the savings on gas does not come anywhere near to covering those expenses. However, by having employees work from home, Cornerstone Brands is saving 100% of the money on those expenses, but, instead of passing some of those savings on to remote employees in higher pay to cover added expenses borne by the remote employees, Cornerstone Brands pockets 100% of those savings by passing 100% of the expenses to remote employees. All of those expenses would normally be paid by the employer for employees working in an office. ![]() However, the gas savings does not compensate for the required expense of work-at-home employees having to purchase and use their own personal computer for Cornerstone Brands work, or the employee having to pay for and use their own internet service or the employee having to purchase the phone system needed for customer service calls or the employee having to use space in their home for an office or the employee having to pay for a desk, chair, printer and supplies for Cornerstone Brands work, or the employee having to pay increased utility expenses such as electricity, heating and cooling to work for Cornerstone Brands or the employee having to pay for health insurance. Their excuse for the low pay was that working from home meant you saved money on gas. However, the pay was extremely unfair compared to the expenses Cornerstone Brands requires work-at-home employees to accept in order to work for Cornerstone Brands. I worked from home for Cornerstone Brands. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |