Submitted by No_Low_2541 t3_10o0zik in wallstreetbets
twinkletwinkle89 t1_j6c2j0n wrote
If PIF already owns +60% of LCID, why would they want to keep the stock price lower? Wouldn’t it be in their best interest to keep the price around their cost basis which is north of $10 dollars.
MyNi_NotYourNi t1_j6c2zge wrote
Your perfectly logical question will very likely bounce right off of the shiny tinfoil surface.
soldiernerd t1_j6g3awn wrote
It’s a fine question but the answer is that PIF doesn’t care about the value of their existing stake as much as they care about the cost of acquiring the rest of the company
rappeasant t1_j6d3tbn wrote
No, it doesn’t matter what the trading price is if they want to buy it out completely. Therefore, it’s better for them to have the price fall as low as possible so they can buy the remaining shares for as cheap as possible
StuartMcNight t1_j6c9x40 wrote
Counter question…. If their plan is to take the company private by acquiring all shares… why would they want to keep the price higher?
No_Low_2541 OP t1_j6c3g4l wrote
I don’t think they can do that without having a vote.. and in that vote, only the non-PIF shareholders get to vote. Otherwise the majority owner get to do whatever they want - even buying out all the remaining shares for $0.0001.
Chenz-Theking-3156 t1_j6dz1nv wrote
If they keep it lower, they can swoop in and buy the remaining at a discount.
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