Replies to post #19043 on GTC Biotherapeutics (fka GTCB)

[Biowatch]

If LFB acquired GTCB in full, would they acquire liability for lawsuits as well, so might keeping a paper tiger alive perhaps be a wise business move?

Or are there other benefits to owning a major stake in a publicly traded U.S. company that play a factor?

[croumagnon]

LFB’s equity stake would reach 90%, which is the legal threshold for a short-form merger that becomes a fait accompli without requiring a shareholder vote.

What exactly are the rules for a takeover? In particular here are my questions:

(1) Can LFB vote its shares even if they are the ones making the takeover offer? Or are their shares not counted in that case?
(2) What percentage of shares have to vote for a takeover before the courts consider the takeover a fact that all shareholeders must accept?
(3) What exactly do you mean by a short-form merger?

TIA

[DragonBits]

Basically I agree with you Dew, but I don't see why LFB has to have any minority shareholders.

Soon or later GTCB will again run out of cash, LFB is their ownly source of cash, and yet another dilutive offering will occur.

Sooner or later LFB will get over 90% just in the natural course of events. It's just a matter of time, and during this time GTCB keeps developing their technology, so from LFB point of view it isn't wasted time.

IMO once LFB went over 20% the die was cast.