Perspective on the $$ value of control!

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Le Penseur

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Perspective on the $$ value of control!

posted on Jun 16, 2010 11:32AM

In the news recently, MAGNA Corp has been critisized for wanting to get rid of its dual level share structure which currently gives a multi vote status to Frank Stronach's shares and single vote status to all others. (thus unltimate control to Frank Stronach) The Corp is willing to "essentially" buy out Frank (the founder of MAGNA) for a sizable premium (400M +) not only because of the company's assets and balance sheet, but moreso because of the perceived value of "control of the company".

On this hub, we have been discussing the most recent "superior offer" by CLF without necessarily exploring the possible value (long term) of control of the asset(s)... CLF certainly has made it very clear that they value control and are determined to get it...could someone with a more in-depth perspective (knowledge) provide some insight into this if it is worth discussing...thx