Tuesday, June 23, 2009

Entrust Takeover Vote Delayed to July 10

A former employer of mine, Entrust, is in the midst of a battle over a takeover bid by Thoma Bravo for $1.85 per share. Entrust’s board of directors is split over whether the deal is in the best interests of shareholders, and shareholders haven’t embraced the deal.

The vote on the takeover was originally scheduled for June 8, but was delayed to July 10. The stated reason was to “allow stockholders adequate time to evaluate the new information,” but it seems obvious enough that the real reason for the delay is that the vote would have failed.

I have now received 4 mailings urging me to vote for this takeover, each one more shrill than the last. The latest mailing contains the following on its own line:


The “TODAY” part adds an amusing air of desperation to the request.

The bid to complete this takeover took a blow when Arnhold and S. Bleichroeder Advisers, LLC, who control about 2 million votes and are accumulating shares, announced that they would vote against the deal. Their number one reason is that the price is too low.

One of the side benefits of direct stock ownership is getting to follow these little dramas.

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