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Fremont Taking a Look at BH Offer


Parsad

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From the 13D....

 

"Please note that this letter should not create the understanding that Loeb would accept an offer of $29.00 per share; rather, Loeb is simply of the opinion that Biglari’s offer is credible and that the valuation is high enough to be a springboard for a value maximization process. Loeb reserves its rights as a shareholder to take such actions to secure value maximization. Further, we hereby request a meeting with the CEO and Chairman of the Board of Fremont as soon as is practicable but in any event no later than October 29, 2010."

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I think Chanticleer has had 4 insurance buyouts over the last year or so.

 

Does someone on the board manage this fund? From what it looks like on that report, they're only managing about $1.3 million. Although short, their record is very, very good.  I'd suspect someone here must know them.

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The $29 price is not adequate.  If rejected, for shareholders at least, a $21 price will have to be adequate.

 

Not sure what is taking so long.

 

I may scale into BH if this deal goes through.  Of course, that depends on price.

 

 

 

 

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If "them" is here, I salute them on their stock selection.  I believe I borrowed some investing ideas from them in the past.

 

However, I would disagree with them on their position on FMMH.  I think $29 is fair, but full disclosure I have no skin in the game.

 

 

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It looks like Biglari is wanting to take some steps to make sure that the board of Fremont looks at the offer...

 

This is an interesting, and frankly, ballsy strategy... we would expect nothing less from Biglari.

 

http://www.sec.gov/Archives/edgar/data/93859/000092189510001567/sc13da407428006_10262010.htm

 

"On October 26, 2010, BH delivered a letter to the President and Corporate Secretary of the Issuer nominating Sardar Biglari to be elected to the Board of Directors of the Issuer at the 2011 annual meeting of shareholders of the Issuer, or any other meeting of shareholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof."

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Why should any of the owners (shareholders) be represented by the BODs?  That seems counterintuitive to Michigan business practices (with all due respect to Jeff Daniels).

 

I can see the SAT question...what  ______ is to business, Chicago is to politics.

 

A) Michigan

B) Michigan

C) Michigan

D) The state that is East of Wisconsin

 

 

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I can see the SAT question...what  ______ is to business, Chicago is to politics.

 

I live in Michigan and I can agree with that. Michigan has done little to help businesses here for the last many years. I have some hope that the new Gov who I expect to be Rick Snyder who was formerly head of Gateway computer and calls himself a business minded geek will do something to change that.

 

SmallCap

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I should qualify - Michigan is home to many great small cap investors and other citizens.  Chicago is one of my favorite US cities (if not my #1 favorite).

 

However, corruption is corruption.

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No one got my Jeff Daniels joke.

 

On the brighter side, don't worry about chasing FMMH at this point.  If they accept, you will be able to buy BH and things will be ok.  I'll explain more.  But if FMMH rejects, the stock will probably gravitate down unless they announce they will accept a higher offer.

 

I think if BH gets FMMH, you will have several good businesses.  Burgers, which I have never tasted, generate cash.  Tough to lose money with money management.  Great business. 

 

Insurance = float.  I think Biglari really gets that.  Doesn't mean he will have Buffett like success.  Not in the least.  But he will have another great business.

 

A lot of cash flow potential here.  Is Biglari Buffett?  No way in H-E double hockey stick.  Is he close?  Nope.  Is he greedy, almost obscene greedy?  Yep.  But BH will do well if he gets FMMH.  And the stock may drop on such a potential announcement, giving you your chance.

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I'd suspect someone here must know them.

Maybe someone here is one of them :o

 

 

Who is "them", then?????? ??? :P

http://cornerofberkshireandfairfax.ca/forum/index.php?action=profile;u=1392

 

Back to Fremont Michigan. I see that FFH have bought FMR for 1.22 times tangible book value. That kind of offer applied to Fremont would give it a value of $32.65.

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This is fun with all the merger related activity currently going on in Michigan, I can't remember this much interesting activity outside of the auto industry for a while now.

 

I have an Aunt who works for Fremont and Fremont MI is my family's hometown. Kind of fun dealing with relatively local companies for a change.

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