Quick summary: American Greetings (NYSE:AM-OLD) is a management buyout (MBO) with huge conflicts of interest. With one activist shareholder, an interesting deal structure, and an extremely discounted price, there is a significant possibility of a higher bid coming in from a competitor or a private equity shop. Even short of that, there's a strong case to be made that management will need to raise their bid in order to get this deal through.
American Greetings products are likely familiar to most readers; they, along with Hallmark, are the two dominant players in the greeting card market, with a roughly 82% market share between them (source). In addition, the company owns the valuable "Strawberry Shortcake" and "Care...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|