Public stock goes private?

There must be some examples of a shareholder rejection of a buyout but I can't think of any. In general, when someone wants to buy out a company, that is very good for shareholders who are usually offered a large premium over the current market value of their stock. When buyouts fail, it's usually because management doesn't want the deal and adopts any number of different defenses including poison pills or something happens that cause the acquirer to back out of the deal like an adverse market event or a drying up of credit (this happened a lot back in 2008).

However, there would be no need to go to Court if the shareholders rejected the deal. If the owners of the company don't want to sell at the offered price, there is no lawsuit that the potential acquirer can bring. Lawsuits are usually between management of the target firm and the acquirer.

When a public company goes private, unless the offer (it has to cash) is awefully low, otherwise, I really do not see any reson if any major share holder would reject the offer. Usually, to take it private, the compnay would offer a premium price more like 20% - 25% over and beyond the current stock price. Major shareholder would probably request a little more but taking this to court is not benefitting any party other than the lawyers. Usually, this kind of thing would be settled out of court.

There had been 3 cases like that in the past 15 years.

(1) Kirk Korkorian wanted to take over the entire Chryslar to take it private. This case was settled out of court. Kirk Korkorian didn't win. However, he owns 20% instead of 10% of the Chryslar Corp. and appointed 5 more directors to the board.

(2) The TdGreenline, now TdWaterhouse went public and 1 1/2 year after took it back private. The cash offer was higher than the market price but lower than its IPO. The TD Bank got a bad name out of it.

(3) Bill Gates and Prince Alaweed took the Four-Seasons Hotel private paying $6B. That was quite a premium above the market price. No one objected.

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