Step asside BCE and Peoples, make way for Patheon v. JLL!
I must begin by declaring my personal involvement: I own a modest block of Patheon shares and I find it galling that JLL, the majority shareholder who owns 57% of the outstanding shares, sought to buy out the remaining shares for $2.00 but refuses to sell its shares for $3.50.
But is this really oppressive? The more I ponder, the less sure I am. Shouldn’t the keen entrepreneurs at JLL be allowed to make a good faith offer to buy shares at a price that they believe to be a bargain, particulalry when it is at a premium to the current market price? Is a slim majority interfering with the investment activities of a large minority or is this the bid-and-ask process of the marketplace finding the true market value? After all, both offers could fall short of the actual market value of this company despite the fact that small blocks of shares can be purchased for $3.00 on the TSX.