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Thats what stock manipulation companies do. Acquire companies to manipulate their stock price. They don’t do real business. Companies should beware if SS&C acquires them if they want to stay in business.
Unfortunately, acquiring a company and dismantling it is not against the law. Carl Icon has made a career of it. I’ll never forget when he acquired a chunk of TWA on the open market, eventually taking company private. Then the dismantling started. He reduced many of the routes, especially out of KC. Sold the rights to many of the gates at KCI. Sold excess planes. Laid off a ton of employees. Sold the overhaul base at KCI. Withdrew the excess monies in the pension plan. After selling anything that had a value, sold what was left to another airline (Southwest maybe?)
Companies are always ripe for a takeover like this when a majority of the shares on the open market can be purchased for more than the companies ongoing value. DST fell into that category. Stone’s problem was that he Also thought he could make the TA and health business more valuable with his astute management skills. He has sold everything that doesn’t add to his bottom line, and thought he could better manage the mutual fund and health components and make them more profitable. He sure guess wrong with those!
Looks like the SEC would move in and stop the SS&C madness of acquiring companies and dismantling them.
What a shame. The acquired company is in for a bumpy ride.
The acquisition post says the company currently has 30 employees? If SS&C holds true to how they have cut staff and the CEO, this company should be down to just about 2 employees in a few months.
Its a shame SS&C is still allowed to acquire companies, pull out all of their cash, lay off their people and leave an empty shell of an organization. Looks like the authorities would move in. Look at the companies they have acquired. They end up to be only shell organizations not real companies.
Shame! There goes another good company.