Failed Sale of Gleacher Is a Warning for Directors

The Dell drama is still unfolding, but for a cautionary tale of how boards, even when they may be well-intentioned, can harm investors of a takeover target, take Gleacher & Co. Shares in the small investment bank, which is partly backed by MatlinPatterson Global Advisors, have lost more than 60%...

Full description

Saved in:
Bibliographic Details
Published inLBO Wire
Main Author By Francesco Guerrera
Format Trade Publication Article
LanguageEnglish
Published New York Dow Jones & Company Inc 11.03.2013
Subjects
Acquisitions & mergers
Bids
Committees
Computer industry
Corporate raiders
Directors
Stockholders
Online AccessGet full text

Cover

More Information
Summary:The Dell drama is still unfolding, but for a cautionary tale of how boards, even when they may be well-intentioned, can harm investors of a takeover target, take Gleacher & Co. Shares in the small investment bank, which is partly backed by MatlinPatterson Global Advisors, have lost more than 60% in the past year as the prospects for a deal evaporated, business dwindled, and star traders left. [...]unlike at the computer company, where Mr. Dell's dual roles as bidder and CEO give him an incentive, and some leverage, to push down the takeover price, shareholders controlling nearly 40% of Gleacher wanted to sell.