...so I read in the paper that a firm in NB is looking to takeover Clearwater. Clearwater is the largest seafood export company in the Province. Many of the lobsters that are caught around here go from the buyer to Clearwater then out around the world. According to the article in the Chronicle Herald today, they are worth over $70 Million...wowza! It's hard to understand in the article but the jist of it is that this new firm wants to buy many of the shares at a higher than market price. Due to some corporate restructuring done by Clearwater founders, John Risley and Colin MacDonald, if this new firm did what they wanted to they would own the majority of the company. I'm not sure how this will all play out, but it appears to me like these two firms don't like each other and are going to fight.
What does that mean for our Lobster Fisherman? Well, I would think it could be a problem because if someone pays top dollar to buy a company then they need to see some hefty profits to recoup they're money and then make a return. The only way to do that is to pay less for things and have a higher mark-up to the consumer. The gap between the two prices is a profit...hummmm....I don't know. On the flipside, a new company might want to come in and make a good name for themselves and build a strong rapport with the people. Let's face it, they'll make money. Companies that are dead in the water aren't the ones being bought. Too big of a risk.
The more they argue the more we'll read about it...could be interesting!
(http://thechronicleherald.ca/Business/1266508.html)
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