So I heard this on the street . . . Kindler's secret plan for Pfizer is not to get the stock up . . . that's virtually impossible, and he knows it.
Solution: Drive the stock down to below $14, enough to get the sharks circling, then accept a take-over offer for $22, and cash in all executive management parachutes.
You heard it here first.
2 comments:
This will be of interest to Seinfeld fans. Remeber the episode where George goes to the apartment of the NBC boss (who is having a dinner with a fancy girl wearing suede shoes) to renegotiate the contract for the pilot of "Jerry"?
Funny stuff. George leaves with less money than what originally offered.
So Jerry tells him later in their "base" Jerry's apartment:"George, most people negotiate to get the price to go up. In your case you negotiated for the price to go down". Should I say more?
Dr. Rost = You are absolutely correctt. Even if this was not Mr. Kindler's original plan, it could be his new plan since all his efforts to move the stock up have come to nothing. Do you know if JK's options only vest in the event of a friendly take over? If the stock goes to 12 or so, a buyout shop like KKR or Blackstone could bid for Pfizer. They could raid the cash, use the cashflows to pay off debt and even in these hard times and one round of layoffs there is a S***load of fat to cut. New CFO Frank D'Amelio has ramped up the cost cutting but at the end of the day, Pfizer needs more some products! Also you will notice that they named a new head of Investor Relations yesterday...I guess they fired the previous guy and Mr. Kindler and Mr. Amelio are thinking they could do a better job selling Pfizer's phase II pipeline prospects to the street.
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