Originally Posted by
Busboy
Cashcow,
Please report to the collection site, as soon as you land.
Smith owns less than 5% of FDX.
He is the Chairman, President and CEO. Not, the owner. As many, still seem to believe. However, we still are required to speak of him as "Master Fred". Yassum, Sir.
Take your blinders off and start thinking outside the box. I am not saying that FedEx will be taken over by somebody else, but at the right price anything can happen.
Market cap for FedEx at the close of market on Friday was 34.82B.
http://finance.yahoo.com/q/bc?s=FDX
If someone offers $140-150 a share do you think enough people would sell? I say yes. FedEx is a great Company (also very little union representation except the pilots) and they would be a jewel in somebody’s portfolio. Worst case scenario for you is if DHL buys you and spins off the airline as an ACMI. Don’t tell me that it can't happen, because you don’t have to look much further than ABX and Astar. Read the article below and note that IBM market cap is 145.5B!
http://en.wikipedia.org/wiki/Private_equity
http://blogs.zdnet.com/Foremski/?p=146
IBM, the world's largest computer and IT services company, could become an acquisition target for private equity firms said Steve Bengston, managing director at PricewaterhouseCoopers.
Mr Bengston was speaking at a recent lunch panel on trends and predictions for 2007 organized by FountainBlue. Also on the panel was Fred Greguras, a top lawyer at Fenwick and West, and Rick Ellinger, a venture capitalist with WCA Technology, and myself.
Private equity firms are raising ever larger funds and making ever larger acquisitions, some as large as $35bn, said Mr Bengston. At that rate, it is only a matter of time before even some of the largest tech companies become targets.
IBM has a current market capitalization of about $145.5bn. To take the company private would require a premium to be paid. But several private equity firms could potentially finance such a deal.
"IBM is a perfect candidate for private equity firms, there is a lot of restructuring that could be done," said Mr Bengston.
If such a deal were to happen, the new owners would be free to breakup the company into several large business groups. This is a strategy that IBM considered before Lou Gerstner took over as CEO in 1993. He spent nearly ten years restructuring IBM but keeping its major business groups intact.