Long story cut short. We are doing a buyout of a target company (PRIVATE). The target is owned 50% by one company and 50% by the Government and the government wants to sell the 50% stake in a privatization move. However we are interested in gaining some control hence we want a 50+% stake.
The only way we can do this is by approaching the other shareholder but things are tough as they won't sell to us. Does anyone here know any clever ways of gaining board control?
Not sure if either of these are illegal but the first things that come to mind are:
The target wants control so it will not agree to sell to the government. The other complication is a "rights-of-first-refusal" clause that is not clear since the company is private. I'm afraid the 50% shareholder may have that right and we do all our work only to get them to buy the shares from the Government.
What % of rev comes from the gvt? Use them, or contact a major customer and offer them a discount of sorts if they are willing to play ball in the negotiations? Strong arm them with a threat.
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