Is Apple secretly trying to go private?

  • Posted: 16 November 2009 09:31 PM #16

    By going private do you mean management buyout?

    Think about it.  Management has a fiduciary duty to maximize shareholder value.  If they want to buy out the shareholders they must see some value in the stock beyond the current stock price.  If that is the case, then it is management’s fiduciary duty to unlock that value for the benefit of the stockholders.  A management buyout is thus basically a case of management trying to capture for itself value that rightfully belongs to the stockholder but it is being deliberately concealed from the stockholders by management.  It is a clear violation of management’s fiduciary duty and frankly should be illegal.  It is another practice that makes corporate governance in the U.S. corrupt, inefficient, and injurious to stockholders.