The Major Automotive Companies, Inc., a holding company for car dealerships, is driving off into the sunset, i.e., going private. So says their recently filed proxy.
Why leave beautiful Proxyland? Well, there's the expense of being a public company (1.3 million last year, Major estimates). But Major's departure looks to be less about cost than it is about lack of benefit. Several years ago the company was on an acquisition bent, using its stock to snap up underperforming dealerships. Then the stock rolled downhill. Cue the violins: "The Company has not been able to take advantage of the benefits of being a public company, such as enhanced shareholder value, stock liquidity, business credibility and the ability to use Company stock as currency for acquisitions, due to the limited liquidity and low market price of our Common Stock."
So it doesn't look like Major Automotive's decision was a product of Post-Traumatic SOX Disorder, or at least that wasn't the driving force (ouch) .
Posts
