Agreeing on the right price

Takeover target: People walk near the Felda headquarters in Kuala Lumpur. Felda's shareholding in FGV is still well below the 90% it needs to trigger a compulsory acquisition of all the shares it does not own in FGV.

IN a privatisation exercise where a party makes an offer to buy out the other shareholders of a public-listed company, the issue of whether the offer price is right is often a point of contention.

Minority shareholders, particularly, are faced with this difficult question all the time – is the offer good enough for them to sell off their shares?