Yes - this deal appears the biggest smoke & mirrors M & A ever.
. CCE buys EMC for $13 mil odd (with all the promises under the sun for growth and profitability but still never made a profit todate)
. Fast forward a couple of years and CCE sells EMC for 58.5 mil shares in TAG which is worth aprrox $3.8mil
.Thats crystalizing a loss of Shareholders monies of $10 mil
. That also begs the question why does CCE want to retain an investment in EMC via TAG instead of selling it for CASH when CCE needs all the cash it can get its hands on to continue its CETO "journey".
. It does not make any economic sense for CCE SH
. Destruction of Shareholder value if you have ever seen one.
. Shareholders need to ask questions and need an explanation. The new entity is still not budgeting for a profit --- what the ????
. It has been an expensive experience ??
CCE Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
