Who thinks this is could be the grand plan to get things lined out to finally push forward for going public. A lot of folks are cashing out their ESOP.
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ESOP is not real ownership = explicitly says that in the pamphlet. If a sale were to happen the company will first buy out the ESOP at whatever they value it at. Class A shares are the real shares and only shared with MGR2+... those would benefit or lose in a sale. Class A shares can't be leveraged as collateral for a tax free life, they are non transferable per comp policy. If company sells the family would pay minimal long term cap gains and walk away with $100B+ after taxes
Cargill stock is PATHETIC! What a joke. Dangled that carrot of going public for years. Horrible ROI v S&P returns.
If they go public the valuation of the ESOP will most likely go up, so I think its silly to sell off a stock not many people have an option to currently buy.
Wonder if they would try to do something like Ford where if they went public the family has a small percentage of equity but huge voting power. Ford family has 2% equity but 40% of voting power.
Wall Street would have no patience for Cargill. Margins are way too low. The family would get smoked in low market capitalization and taxes if they went public AND they're likely using their equity as collateral to fund their lifestyle tax free. Mostly likely scenario is they sell off poor performing or odd BUs for a small cash infusion and try to grow by M&A in their core competencies. They'll monopolize the food supply and we will all be sc--wed.
Looking at the company performance, disengaged employees and incompetent leadership now would be a bad time to try this.
Would definitely be one way to give the family their lump sums and then they all can be happy….no more having to send them their monthly checks!