A take over? Maybe....Let's backtrack the possibility.
Let's say a deep pocket company may be looking for a supplier to make their small, shippable parts that require a unique construction method or short runs for large priced, but limited number if end units. Like the hood and fenders of a tractor that sells for 50 to 100k per unit. Each year you may want to tweak the shape of these cosmetic features while your tractor remains otherwise unchanged. So building this cosmetic factory in-house isn't practical.
You find a good facility with a good plant manager and high quality specialized work force with in house design capabilities. Let's use mwwc facility in Michigan as an example.
You see the company is in financial trouble due to the economy, but you recognize the diamond in the rough. Aquiring this co would allow you to get good parts at a good price and you will be able to turn a profit selling to others especially companies in other markets than yours, such as auto.
You start negotiating contracts with the small company, but delay the contract time after time. Forcing them to turn down other work in anticipation of the big contract. Painting mwwc into a corner and driving the pps down to a point where you could easily come in and take it over.
Mwwc mgmt is no dummy. They can make good money by staying independent and taking on other work as well as the big tractor maker. So they dont want to lose mwwc.
After 2 or 3 stalls on the contract, they figure out what the big guy is doing so it creates some supervoting shares to allow them to maintain control of mwwc even if they are no longer the majority shareholders.. However mwwc still wants the big contract so they aren't going to bash the big guy or drive away the business. This was just a subtle block to send the big guy the message that they are not dealing with amatures.
Mwwc mgmt was forced to take some questionable financing to stay afloat and wait for the big guy to give in.
Meanwhile we are approaching a new model year and the big guy has to either go with mwwc or find somebody new really quick, or forego a cosmetic change this cycle.
Mwwc isn't going to completly retool until they get a contract so they are limping along with some smaller orders trying to keep their doors open and employees working.
So it is a game of financial chicken and mwwc mgmt is standing up to the bully's and trying to keep their company.
Mwwc has to file 10q and investors abandon further hurting the company. Who is going to cry uncle first?
That is the kind of thing I would expect from mwwc mgmt after following them the last couple of years, so maybe alot of us (myself included) should not be so quick to bash the mgmt . As it is so often mentioned there is no gag order but not much is said either. It all fits.
Of course this is pure speculation, but at least I can backtrack motives that are in the company's best interests that don't sacrifice the investors.
This just one of a million scenarios and pure fantasy, but maybe plausible.
