chavoburrito
Junior Member
Can anyone please help me with this question???
Mahmud is the CEO of Diamond Enterprises, a publicly held media company. On January 15 Mahmud appears on CNBC and in response to a question about Diamond’s acquisition plans says that they were looking to diversify by acquiring a social networking site. On March 30, 2009 he informs Diamond’s lawyer, Daniel, that Diamond has changed its acquisition plans and was now in discussion to acquire Gamerific, a publicly held online social gaming company, as part of a broad overall diversification and vertical integration strategy. The Chair of the Board of Gamerific is the famous entrepreneur Chen. When the acquisition is announced on April 15, Diamond’s stock price declines by 30% within a few days and the price of Gamerific stock goes up by 20%, the premium price Diamond agreed to pay for Gamerific. On September 15 Diamond’s stock suddenly rose to a 50% premium over the pre-announcement price when, as had been speculated in the press since early 2008, the Federal Trade Commission announced that no new online gaming licenses would be issued. Evaluate any potential claims by shareholders of Diamond against Mahmud and shareholders of Gamerific against Chen. Please be careful to specify which classes of shareholders might have claims.
"be careful to specify which classes of shareholders might have claims."
Please note that by this phrase what I mean is that you should pay attention to what dates shareholders might have bought and sold shares
Mahmud is the CEO of Diamond Enterprises, a publicly held media company. On January 15 Mahmud appears on CNBC and in response to a question about Diamond’s acquisition plans says that they were looking to diversify by acquiring a social networking site. On March 30, 2009 he informs Diamond’s lawyer, Daniel, that Diamond has changed its acquisition plans and was now in discussion to acquire Gamerific, a publicly held online social gaming company, as part of a broad overall diversification and vertical integration strategy. The Chair of the Board of Gamerific is the famous entrepreneur Chen. When the acquisition is announced on April 15, Diamond’s stock price declines by 30% within a few days and the price of Gamerific stock goes up by 20%, the premium price Diamond agreed to pay for Gamerific. On September 15 Diamond’s stock suddenly rose to a 50% premium over the pre-announcement price when, as had been speculated in the press since early 2008, the Federal Trade Commission announced that no new online gaming licenses would be issued. Evaluate any potential claims by shareholders of Diamond against Mahmud and shareholders of Gamerific against Chen. Please be careful to specify which classes of shareholders might have claims.
"be careful to specify which classes of shareholders might have claims."
Please note that by this phrase what I mean is that you should pay attention to what dates shareholders might have bought and sold shares
