I am really stuck on the MBO analysis. In an MBO, the buyers, if you will, have everything to gain from a low stock price. As a result, issues like the SEC, possible indictement, no executives, a controlled board and no PR are all real positives for beating the stock price to limit the price. There would be no real incentive to have the price increase because a. It would raise the price obviously and b. they have already made a decision to turn away from the stock holding public, small as it is.
The only thing that does not make sense is how do people like Fidelity and Soros etc., put up with a destroyed stock price and the possibility, very real possibility, of years of litigation for various areas including fraud in the back dating?