Columbia Property Trust's (CXP) $300 million modified Dutch Auction tender offer ended last Friday. Columbia's stock, which ended the week around the auction's $22.50 floor price, has jumped early this week, and as I write this post is trading over $24.00 per share. Who again supposedly benefits from these tender offers?
My family - I tendered 99 shares each in my kid's accounts and they made almost $300 each. Who knew there would be no pro-rationing and they could have done all they wanted.
ReplyDeleteBut seriously - if the stock is "worth" $25 - then all shareholders benefit by the buyback. If not - what is the board doing?
The volume, or lack there of, is interesting here. Relative to peers, this stock should / could be trading in low to mid thirties. Very strange... could it be lack of volume is scaring away institutional buyers???
ReplyDeleteOr could it be the portfolio is worth $22.50/share, and Leo Wells and Friends stole the rest?
ReplyDeleteM&A anyone?
ReplyDeleteplan B, as in "bride".
ReplyDeleteAnd away we go...
ReplyDeleteUp, up and away!
ReplyDelete