The PBS* always loses
*Poor Bloody Stockholder.
Here's the sequence when a bid comes in :
Top priority - Executives check their terms of service and see either (1) how much they have to be paid to get lost or (2) how soon they go on the dole (welfare). No need to check the insurance cover for executive negligence since that will have been made watertight years ago,
Second priority - Call the lawyers to introduce a poison pill which for decades the company did not need.
Third priority - Get ready for a pitched battle in court over the poison pill. Lawyers win again.
Fourth priority - Call your golf club buddies or anybody to act as a white knight to soak up shares from wavering stockholders at a preliminary stage of the battle (before the bidder ups its offer). Clandestine deal to buy back their shares if the bid collapses.The arbitrageurs will move in anyway whether you ask them or not. They win.
Fifth priority - Call your main competitors (or any other company big enough to make the whole dish indigestible) to see if a quick merger or takeover may be agreed with guaranteed jobs for the executives.
Sixth - Engage advisers to say the target company is ridiculously undervalued, They get paid.
Seven - Dig behind the sofa to revalue assets which have been underperforming for years. Plan to write them off again after the bid fails.
Eight - Embark on long overdue restructuring and cost-saving to diminish future prospects for a new parent company.
Nine - Same advisers as in 6 asked to advise whether the bid is good for shareholders. Pay them. Then sack them if the answer is "yes". Engage new advisers.
Finally step back to see if the deal is actually good for stockholders.
Did I miss anything?