Take the money and run
If you ever wanted proof that long-term-focused investors are a tiny minority, consider this. Only 0.7% of votes cast at Trade Me’s scheme meeting in April were against the takeover of New Zealand’s dominant online classifieds site.
What were the other 99.3% thinking? That British private equity acquirer Apax Partners was somehow buying a lemon? Greed is a powerful motivator, and virtually all shareholders apparently believed a 27% takeover premium was adequate compensation to discard this wonderful business.
The takeover succeeded, delivering an annualised return of 15% a
