Arcam AB fka AMAVF

[Tom Joad]

Ownership percentages and acquisition.

These stages stand out for now-

* 10 % or more of the total number of shares - holder can block compulsory acquisition (which requires holding of more than 90 % of the shares in the company) and can exercise certain minority rights e.g demand extraordinary shareholders’ meetings, require appointment of a minority auditor and require certain distribution of dividends;

* 30 % of the total number of votes in the company - substantial holding level which requires the holder to announce the magnitude of the shareholding and within four weeks place a mandatory bid regarding the remaining shares;

Anyone ever been to an auction? This is more complex because the auction item, Arcam in this case, has many owners with the power of vote on bid acceptance. GE would be foolish to: (i) bid too high, (ii) buy less than 10%, and (iii) buy shares at too fast a rate. Too high a bid means you're preventing yourself from securing other resources. Buying less than 10% means you cannot block compulsory acquisition. Finally, (iii), buying shares at a fast rate would increase share price too much, also, I'm not sure that the supply-demand curve isn't inelastic in the case of Arcam shares. Arcam has a "natural monopoly" on their technology, everyone realizes that, and there are a finite number of shares.

Auction rules prohibit owners of the sale item to bid and prohibit owners to pay others to bid on the sale item. With 3 board members that I'm certain are reporting back to GE, I ask, doesn't something smell fishy here?

Gadus morhua

My answer to post #4565, shameless.