To be fair dicky2000, it was part of the original complex series of calculations that would determine how much PPL would pay for Cohort. There were a few variables involved, including Cohort performance amongst others. PPL and Cohort obviously disagreed on the Cohort results and hence the amount due. So who was in the right - well, we just don't know.
One of the problems may have been that PPL never had the foresight to have Cohort agree to an independent umpire calculating the final payment, I presumed they thought this would be a friendly agreement, but when the cost of Cohort became apparent to PPL, including the years of problems that PPL had with the integration, I expect their estimate of price was on the lower side (at least according to Cohort), even though for shareholders and some other analysts, the acquisition was not accretive for the business at any of the price ranges. You can see the links to other articles I've previously posted that show this.
I don't know who's calculation is correct, PPL's or Cohort's. What I do know is that once again investors have been left uninformed as to what was going on, and the only way we found out was through Cohort publishing a request to have the chairman of PPL removed. We also know that PPL have now been coerced to a certain degree, to pay the Cohort price, and drop the legal action, and in return Cohort would drop the action to remove the PPL chairman.
So obviously, the PPL chairman and MD/CEO and other senior PPL executives and lawyers had a discussion and decided to just pay Cohort what they wanted, so that the chairman could stay with PPL.
The whole thing has been distasteful to say the least.
Gw
PPL Price at posting:
13.0¢ Sentiment: Sell Disclosure: Held
