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The buyout attempt could stall if shareholders deem it too low, or if an outside bidder emerges.
Rarely does a management group that proposes taking the company it runs private end up losing to an outside bidder.
A study of buyouts over the past two years suggests that when management is the buyer it pays, on average, thirty per cent less than an outside bidder.
The news follows Mike Ashley's announcement that stadium naming rights were up for grabs, but having failed to find an outside bidder, the owner has re-branded the stadium with the name of his own company.
The CBS stock declined, speculators said, because the installation of Laurence A. Tisch, head of the Loews Corporation, as acting chief executive of CBS could dampen any hopes for a takeover of the broadcasting company by an outside bidder.
To promote the independence of each publisher and appease agents, the combined company adopted the Random House tradition of letting its divisions bid against each other, as long as there was also at least one outside bidder -- a degree of internal competition no other major publisher allows its imprints.
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Roles from cleaning to asset-management and human resources are open to outside bidders.
Until the shareholders accept the offer, outside bidders are still free to compete.
First, traditional auction companies are opening their auctions to outside bidders via password-protected Internet sites, like Manheim Online (www.manheim.com), which, like Manheim Auctions, is part of Cox Enterprises.
If the stake were sold separately, outside bidders would have to top American's price by at least 10percentt and American could deduct the reserve price from its cash offer of $500 million.
pays its valued faculty well -- new entry-level professors in economics earn around $80,000, and the top senior faculty members make more than $200,000 -- and the school was prepared to match the salary offers of outside bidders.
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