The unprecedented wave of 38 Chinese management buyout announcements since 2015 has brought below average bids for U.S. shareholders.
Many U.S. and Chinese shareholders are discontented with the low bids, but there is little to no legal recourse due to jurisdictional issues in offshore tax havens where domiciled.
Of the 32 companies that announced buyouts who listed in the U.S. via IPO, 19 of the companies are offering shareholders bids below their IPO price.
Meanwhile, their cash piles have grown six times larger than when they arrived in U.S. stock markets.
These managements have the ability to raise the bids to fair value, to depart U.S. stock markets on good terms, and avoid destroying value for shareholders.
Chinese “Squeeze Outs”
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