If you are looking for opinions:
I have voted no on all my shares and am committed to leaving the stock if it actually goes through, which is debatable after hearing the tone in the voice of the individual who called me 2 weeks ago. My loss would be great but I believe the alternative even greater. The reason for this stance of mine is fourfold:
1) The deal does not make a lick of sense. For GTC to be thinking so far into the future when their present is somewhat perilous (if no financing next year, what then?) is neglectful of not only GTC shareholders but also GTC' employees. Less outstanding shares supports higher valuation and, likewise, better financing potential.
2) If LFB' majority ownership does not kill any acquisition potential, it does dim that prospect. This is really the only valid reason to hold now for GTC' potential revenues are so foredated it is unreasonable to expect a better value than we see today on true valuation alone. If 2006 is a good example, GTC will have roughly 400 million outstanding shares before they even know if this LFB collaboration will ever prove fruitful. With 10 mil in potential revenues circa 2008, todays shareholders are playing with fire.
3) I believe LFB' voting strength hinders other potential, maybe more lucrative, deals for GTC. Face it, being controlled by a state owned French firm looking for product is not conducive to the time and workforce required for other projects. Increasing expenses is the last thing GTC needs right now.
4) The LFB deal is another classic example of GTC' board disregard of shareholders. They do not mind diluting the heck out of the stock at historical lows when cash is not critical but ask them for a cut in pay for failing with Atryn this past year and a half? no, they voted themselves raises instead.
