In any takeover there will be unhappy shareholders, but this does not automatically mean nefarious things. PAY lost its biggest customer, and as such decided to do a strategic review. FI came in with a cash bid and a huge premium to the market. Shareholders of course get a vote on the deal, but the market was valuing the stock at $2 and a $4 cash bid is significant. Yes, shares were higher this year. The long term potential may still be higher than that. But investors did not believe so. Thus the only way to 'object' to the deal is to vote 'no'. We are of the view, however, that this deal will proceed as is outlined. Do we think FI is getting a company at a low valuation after its problems this year? Probably. But it is a firm attractive bid and shareholders will need to decide. FI is being opportunistic, no doubt, but we can't fault it for that alone.
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